The independent power producer expects overall performance to remain satisfactory for FY21 

By NUR HANANI AZMAN / pic credit: ANNUAL REPORT

MALAKOFF Corp Bhd would continue to focus on enhancing the operational efficiency of its power plants and waste management business while implementing cost-saving measures to weather the Covid-19 pandemic storm this year. 

The independent power producer, being an essential services provider amid the Covid pandemic, expects overall performance to remain satisfactory for the financial year ending Dec 31, 2021 (FY21). 

“As the nation’s vaccination programme gathers pace, the economic sectors are expected to gradually reopen and lift business sentiments. 

“As such, Malaysia’s growth recovery is expected to broadly resume in the later part of second half of 2021 and accelerate further going into 2022,” Malakoff said in an exchange filing last Friday. 

The group has made significant inroads in its renewable energy expansion, particularly in the roof-top solar segment. 

On April 14, 2021, the group signed a solar power purchase agreement (SPPA) with AEON Co (M) Bhd for the development and usage of a solar energy system at AEON Taman Maluri Shopping 

Centre with an installed capacity of 2.11 megawatt-peak (MWp). 

On July 13, 2021, Malakoff completed the signing of six SPPAs to develop rooftop solar energy systems with DRB-Hicom Bhd with a total capacity of 13.41 MWp. 

Malakkoff said these projects, together with the secured rooftop solar projects with renowned logistics industry players namely Johor Port Bhd, Northport (M) Bhd and Pos Malaysia Bhd, will generate 33,243 MWh per annum and neutralise 23,070 tonnes of carbon emissions per year. 

Malakoff’s net profit for its second quarter ended June 30, 2021 (2Q21), rose 12.2% year-on-year to RM117.73 million from RM104.96 million last year, primarily due to higher contribution from Tanjung 

Bin Power Sdn Bhd coal plant on the back of higher applicable coal price. 

The independent water and power producer also attributed the stronger earnings to higher contributions from Alam Flora Sdn Bhd and foreign investments in associates. 

“However, these were partially offset by lower contribution from Tanjung Bin Energy Sdn Bhd coal plant, given the absence of settlement agreement with Alstom Power Systems and GE Power Services (M) Sdn Bhd for the losses and damages incurred in relation to failure events occurred between April 2017 and June 2019,” the group said in the bourse filing. 

Its 2Q21 revenue climbed 5.2% to RM1.58 billion in the period from RM1.51 billion for the same period a year ago, mainly due to higher energy payments recorded from the two coal plants. 

However, these were partially offset by lower energy payments recorded from Segari Energy Ventures Sdn Bhd and Prai Power Sdn Bhd, given the decrease in the despatch factor. 

The quarter’s basic earnings per share stood at 2.41 sen, compared to 2.15 sen in the corresponding period last year. 

The board has recommended an interim dividend of 3.10 sen per ordinary share for FY21, payable on Oct 20. 

Malakoff shares closed 0.61% higher to 83 sen last week, valuing the company RM4.15 billion.