by ASILA JALIL / pic by MUHD AMIN NAHARUL
MALAKOFF Corp Bhd posted higher net profit for its third quarter ended Sept 30,2021 (3Q21), at RM67.16 million from RM50.8 million in 3Q20 supported by higher contribution from Tanjung Bin Power Sdn Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE) coal plants.
According to its filing to Bursa Malaysia, profits from both coal plants increased on the back of higher applicable coal price, higher contribution from Alam Flora Sdn Bhd and foreign investments in associates coupled with lower operation and maintenance costs.
Its revenue for the quarter saw a marginal increase of 6.8% YoY to RM1.58 billion from RM1.48 billion in the corresponding period a year prior on the back of higher energy payments recorded from TBE and TBP.
However, these were partially offset by lower energy payments recorded from gas plants namely Segari Energy Ventures Sdn Bhd (SEV), GB3 Sdn Bhd and Prai Power Sdn Bhd given the decrease in despatch factor.
For the cumulative nine months (9M21), the group logged a net profit of RM245.34 million, up by 0.16% from RM244.94 million in 9M20 primarily attributed to higher contributions from TBP and TBE coal plants.
Pre-tax profit for the period came in higher at RM404.96 million, an increase of 9.4% YoY from RM370.31 million last year.
However, these were offset by the absence of TBE’s settlement agreement with Alstom Power System and GE Power Services (M) Sdn Bhd for the losses and damages incurred in relation to failure events which occurred between April 2017 and June 2019, lower contribution from SEV given the decrease in despatch factor and higher depreciation charges.
Conversely, revenue for the period dropped 5.1% YoY to RM4.52 billion from RM4.76 billion in 9M20 due to lower energy payments recorded given the decrease in despatch factor largely from SEV and TBP plants.
The group said the government’s renewable energy (RE) and energy efficiency initiatives under the 12th Malaysia Plan, as well as the government’s commitment to strengthen its sustainability agenda in Budget 2022 augur well for the group’s RE and environmental services focus areas under its overall strategic growth plan.
The group had acquired a land in Port Klang in mid-July as part of the proposed development of a recovery facility for waste management and expansion of its environmental business activities.
Malakoff expects overall performance to remain satisfactory for the financial year ending Dec 31, 2021.