KUALA LUMPUR (Aug 23): Malakoff Corp Bhd made only half as much in the second quarter ended June 30, 2018 owing to lower contribution from its assets, primarily Segari Energy Ventures Sdn Bhd, following a tariff reduction under the extended power purchase agreement.

Lower fuel margins recorded at Tanjung Bin Power Sdn Bhd and Tanjung Bin Energy Sdn Bhd coal plants also contributed to the 49.11% drop in net profit to RM52.55 million or 1.06 sen per share, from RM103.27 million or 2.07 sen per share last year.

However, revenue rose 12.07% to RM1.94 billion against RM1.73 billion before.

The group has declared an interim dividend of 2.1 sen per share for the financial year ending Dec 31, 2018, payable on Oct 11.

For the cumulative six months, Malakoff's net profit declined 47.81% to RM105.45 million or 2.13 sen a share, from RM202.05 million or 4.04 sen a share a year ago, while revenue was marginally higher by 0.93% year-on-year at RM3.55 billion, from RM3.52 billion.

Looking ahead, the group remains positive on the overall outlook for 2018, given strong electricity demand from the industrial and domestic sectors and enhanced operational efficiencies.

"The group will continue to focus on improving the performance and reliability of its assets to minimise disruption," said Malakoff, adding that the group's existing overseas investments are expected to yield positive returns in the coming quarters.

It said it would continue to explore potential opportunities in both greenfield and brownfield, in high growth regions, as well as in renewable energy projects overseas.

Malakoff closed 4.5 sen or 4.57% higher at RM1.03 today, for a market capitalisation of RM5.06 billion.