This article first appeared in The Edge Financial Daily on November 22, 2017

KUALA LUMPUR: Malakoff Corp Bhd’s net profit rose 25% year-on-year (y-o-y) in the third quarter ended Sept 30, 2017 (3QFY17) to RM64.18 million from RM51.51 million, mainly from compensation received from the settlement of a dispute between its 90%-owned subsidiary Tanjung Bin Power Sdn Bhd (TBP) and IHI Corp Japan.

Higher contribution from Tanjung Bin Energy Sdn Bhd (TBE) also boosted earnings for the quarter, Malakoff said in its quarterly result filing with Bursa Malaysia.

Revenue climbed 20% y-o-y to RM1.82 billion from RM1.51 billion, mainly due to higher applicable coal price registered by both TBP and TBE. Its income statement showed other income rose seven times to RM138.55 million from RM19.24 million.

For the first nine months of FY17, net profit was almost flat at RM266.23 million compared with RM265.23 million a year ago — though revenue climbed 22% to RM5.34 billion against RM4.38 billion — mainly as cost of sales grew 29% to RM4.11 billion.

“The results for FY17 will be affected by the lower capacity payment in the revised Segari Energy Ventures Sdn Bhd’s power purchase agreement commencing July 1, 2017, but will be partly offset by compensation received from settlement of dispute between TBP and IHI,” said Malakoff.

Looking forward, Malakoff said the group will continue with its strategic initiatives to achieve future sustainable growth while focusing on plant efficiencies and cost management. It expects its FY17 results to remain satisfactory.