Friday 29 Mar 2024
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KUALA LUMPUR (May 23): Malakoff Corporation Bhd's net profit for the first quarter ended March 31, 2017 rose 17.5% to RM98.79 million from RM84.09 million a year earlier, driven by revenue contribution by Tanjung Bin Energy Sdn Bhd (TBE).

In a filing today, Malakoff said its revenue for the quarter rose to RM1.78 billion from RM1.34 billion a year earlier.

Earnings per share rose to 1.98 sen from 1.68 sen a year earlier.

Reviewing its performance, Malakoff said the higher revenue was due to three months of revenue contribution from TBE compared to only 10 days during the same period in 2016.

It attributed its profit after tax to higher fuel margin and contribution from associates, offset by additional depreciation due to change in estimate of residual values of gas-fired power plants and higher maintenance costs.

On its prospects, Malakoff said the results for the financial year ending Dec 31, 2017 will be affected by the expiration of the existing Segari Energy Ventures Sdn Bhd (SEV) power purchase agreement (PPA) in June 2017.

It said the new SEV PPA, which will take effect upon expiration of the existing SEV PPA, stipulates lower levelised tariffs as compared to the existing SEV PPA.

“Notwithstanding the above, the group is continuing with its strategic initiatives to secure growth opportunities in the power sector as well as to broaden its earnings base in complementary business sectors for the future.

“In addition, the group is focusing on enhancing efficiencies throughout its operations and hence expects the results to remain positive for the financial year ending Dec 31, 2017,” it said.

Malakoff was unchanged at RM1.20 with 166,300 shares traded in the morning session today.

 

 

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