KUALA LUMPUR (Aug 21): Malakoff Corporation Bhd net profit for the second quarter June 30, 2017 fell to RM103.27 million, from RM129.63 million a year earlier, due mainly to lower contributions from Tanjung Bin Energy’s power plant.

In a filing this afternoon, Malakoff said revenue for the quarter rose to RM1.73 billion, from RM1.53 billion a year earlier, driven by higher applicable coal price and higher capacity factor registered by Tanjung Bin Power’s power plant.

Earnings per share was 2.07 sen, compared with 2.59 sen a year earlier.

Malakoff declared a single-tier interim dividend of 2.5 sen per share for the financial year ending Dec 31, 2017 to be paid on Oct 6.

For the six months ended June 30, Malakoff posted a net profit RM202.05 million, compared with RM213.73 million a year earlier, on revenue RM3.52 billion, from RM2.87 billion previously.

Reviewing its performance year-to-date, Malakoff said the lower net profit was mainly due to lower contribution from Tanjung Bin Energy’s power plant and lower fuel margin.

It said these were offset by lower maintenance costs in the current quarter.

On its prospects, Malakoff said results for its financial year ending Dec 31, 2017 (FY17) will be affected by lower capacity payment in the new-revised Segari Energy Ventures Sdn Bhd’s Power Purchase Agreement, commencing July 1, 2017.

“The group will continue 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.

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