Malakoff to drive growth from Alam Flora operations


MALAKOFF Corp Bhd will continue to play a key role as an essential service provider and drive growth with its power plants and waste collection operation through its newly acquired subsidiary, Alam Flora Sdn Bhd.

MD and CEO Anwar Syahrin Abdul Ajib said despite a challenging year, Malakoff registered satisfactory results for the financial year ended Dec 31, 2020, on the back of a better performance of its associates and the maiden full-year contribution of Alam Flora.

Alam Flora continues to be a key driver of Malakoff’s overall profits, contributing a profit after tax and minority interests of RM64.6 million in the current year.

“The group continues to focus on enhancing the operational efficiency of its plants while improving its reliability and availability, notwithstanding the ongoing Movement Control Order.

“The current Covid-19 pandemic and the recent floods in the East Coast have increased the demand for Alam Flora’s disinfection and post-flood cleaning services respectively,” he said in a recent statement last week.

In addition to the rooftop solar projects that were secured with Johor Port Bhd and Northport (M) Bhd last year, the independent power producer recently secured a rooftop solar project with Pos Malaysia Bhd for a capacity of 2.34MW.

Aside from participating in the large-scale solar 4 tender that was announced by the government in May 2020, the group, through its 60%-owned indirect subsidiary Southern Biogas Sdn Bhd, was also awarded a Feed-in Tariff from Sustainable Energy Development Authority to develop a 2.4MW biogas power plant in Johor.

Malakoff’s net profit declined by 60.86% year-on-year (YoY) to RM41.64 million in the fourth quarter ended Dec 31, 2020, while revenue fell 13% to RM1.51 billion due mainly to lower energy payment recorded from Segari Energy Ventures Sdn Bhd given the lower dispatch factor, partially moderated by revenue contribution from Alam Flora.

Malakoff recorded a 46% YoY lower pretax profit of RM74.29 million in absence of one-off gain from the disposal of the group’s investment in Malakoff Australia Pte Ltd in December 2019.

This was partially moderated by the absence of net impairment loss on carrying value of investment in 40%-owned Kapar Energy Ventures Sdn Bhd (KEV) and the absence of KEV’s share of losses as a result of the provision made up to the carrying amount of investment in KEV as at Dec 31, 2019.