RANHILL Utilities Bhd saw a 45.8% drop in net profit to RM6.53 million for the second quarter ended June 30, 2024 (2Q24), down from RM12.06 million the previous year.

The decline was mainly due to an RM8 million profit reversal at its 51%-owned subsidiary, Ranhill Worley Sdn Bhd, related to an oil and gas project.

Revenue also fell by 5.4% to RM561.44 million due to lower contributions from its solar and engineering services projects, despite growth in its water unit.

For the first half of FY2024, Ranhill’s revenue slightly increased by 0.9% to RM1.12 billion, but net profit dropped by 27.2% to RM16.88 million.

Ranhill Utilities anticipates revenue growth in FY2024 and beyond, driven by increased water demand from key projects like the Johor-Singapore Special Economic Zone and data centers, along with a recent tariff hike.

The company also expects to secure non-revenue water (NRW) projects in Perlis, Kelantan, and Pahang.

Additionally, Ranhill’s power division has proposed extending the power purchase agreement for its 190MW Teluk Salut Power Plant in Sabah beyond its current 2029 expiration.

Ranhill’s shares closed at RM1.49, up 4 sen or 2.76%, with a market capitalization of RM1.93 billion. — TMR