Malakoff’s net profit plunges 78% despite higher revenue

by S BIRRUNTHA / pic credit: ANNUAL REPORT

MALAKOFF Corp Bhd’s net profit for the fourth quarter ended Dec 31, 2021 (4Q21), slumped 77.89% to RM9.21 million despite posting a higher revenue in the period. 

The independent power producer attributed the lower net profit to write-off of Segari Energy Ventures Sdn Bhd’s (SEV) deferred expense, lower contribution from Tanjung Bin Energy Sdn Bhd (TBE) impacted by lower capacity payment and impairment of assets caused by plant outage, as well as higher operation and maintenance costs. 

The impact of TBE and SEV was partially moderated by Tanjung Bin Power Sdn Bhd’s (TBP) higher contribution on the back of higher applicable coal prices (ACP) as well as higher contributions from Alam Flora Sdn Bhd and foreign investments in associates, the group’s filing to Bursa Malaysia yesterday stated. 

Malakoff’s revenue for the period rose 28.4% to RM1.94 billion from RM1.51 billion in 4Q20, underpinned by higher energy payments from TBP on the back of higher ACP. 

Malakoff did not declare any dividend for the quarter but stated an announcement on the final dividend for the financial year ended Dec 31, 2021 (FY21), will be made upon the conclusion of the audited financial statements in March.

For FY21, Malakoff’s net profit fell 11.2% to RM254.55 million from RM286.58 million recorded in FY20, while revenue increased 2.9% to RM6.46 billion from RM6.28 billion in FY20 

Malakoff expects its overall performance to remain satisfactory for FY22. 

Malakoff noted that the group continues to leverage on the government’s plan to transition to a low-energy carbon system and expand its renewable energy portfolio with a long-term target of 1,400 megawatt (MW) by 2031. 

In October 2021, the group signed a solar power purchase agreement with KYB-UMW Malaysia Sdn Bhd for a rooftop solar project with a capacity of 1.25MW peak (MWp). 

Malakoff has also received a letter of award from Keretapi Tanah Melayu Bhd or Railway Asset Corp (RAC) on Dec 15, 2021, for rooftop solar projects. 

“To date, the group has secured rooftop solar projects with a total capacity of 24.8MWp,” it added. 

On the environmental solutions front, the group said its subsidiary Alam Flora continues to make progress on the development of its construction and development waste facility (120 tonnes per day) in the state of Pahang which is expected to commence operations in 2Q22. 

Shares of Malakoff closed one sen or 1.40% lower to 70 sen yesterday, valuing the group at RM3.50 billion.