by SHAFIQQUL ALIFF / TMRgraphic

MALAKOFF Corp Bhd earnings fell by 15.8% year-on-year (YoY) to RM50.8 million in the first quarter ended on March 31, 2022 (1Q22), despite revenue rising 39.4% YoY to RM1.88 billion in the quarter.

The independent power producer, in its exchange filing today, stated the drop in profit was due to a lower contribution from the Tanjung Bin Energy Sdn Bhd (TBE) resulting from the plant outage caused by low-pressure turbine blade failure, coupled with higher depreciation charges.

The higher revenue for the quarter was primarily due to the higher energy payment recorded for its Tanjung Bin Power Sdn Bhd (TBP) and TBE given the higher applicable coal price (ACP).

Malakoff profits before taxation (PBT) increased by 1.6% YoY to RM98.2 million in the quarter due to higher contributions from TBP and ACP as well as from Alam Flora Sdn Bhd (AFSB).

The higher PBT was also due to its foreign investment in associates and joint ventures.

The group also expects overall performance to remain satisfactory for the financial year ending on Dec 31, 2022, with the Malaysian economy expected to recover post-pandemic.

Malakoff MD/CEO Anwar Syahrin Abdul Ajib remains optimistic about the group’s performance for the rest of the year and will continue to expand its renewable energy (RE) portfolio together with focused growth in the environmental solutions’ non-concession segment.

“The group recognises the importance of embedding an environmental, social and governance-driven action plan into its workstreams, which subsequently will enable a low-carbon, resource-efficient sustainability agenda to unfold new revenue opportunities in RE and the environmental solutions sphere. This is crucial as we embark on our journey towards achieving net-zero carbon emissions by 2050,” he said in a statement.

In March, it signed a memorandum of understanding with Japan’s Itochu Corp to conduct a feasibility study on decarbonisation via the utilisation of hydrogen/ammonia in Johor.

The group’s solar portfolio currently stands at 39 MWp, translating to a total carbon avoidance of 30,601 metric tonnes a year.

The company has successfully achieved commercial operations for rooftop solar projects with a capacity of 11 MWp. 

Its subsidiary, Alam Flora has completed the physical works of its 120-tonne per day construction and development waste facility in Pahang. The facility is expected to commence operations in the second half of this year.