KUALA LUMPUR (Nov 21): Malakoff Corp Bhd's net profit for the third quarter ended Sept 30, 2016 (3QFY16) plunged 67% to RM51.51 million or 1.03 sen per share from RM156.02 million or 3.12 sen per share a year ago, due to depreciation charges arising from change in estimate of residual values of gas-fired power plants, lower contribution from Port Dickson Power Bhd, foreign exchange translation loss and higher maintenance costs.

But these were partially offset by higher profit from its associates, said its filing to Bursa Malaysia today.

However, revenue for the quarter rose 18% year-on-year (y-o-y) to RM1.51 billion from RM1.28 billion as the Tanjung Bin Energy power plant in Johor, which commenced its operation on March 21, has started to kick in.

For the cumulative nine-month period (9MFY16), its net profit was down 23.4% to RM265.23 million or 5.3 sen per share against RM346.21 million or 7.91 sen per share in 9MFY15, also due to the same reasons.

The lower earnings for the period was partially offset by insurance claim on rotor replacement, higher contribution from its associates and lower finance costs following the redemption of the unrated Junior Sukuk Musharakah.

Revenue for the period gained 11.5% y-o-y to RM4.38 billion from RM3.93 billion, thanks to the commencement of the Tanjung Bin Energy power plant.

Moving forward, Malakoff anticipates the challenging environment to persist over the medium term.

Hence, it has embarked on strategic initiatives to continue to be in a position to secure growth opportunities for the future, apart from enhancing efficiencies throughout its operations.

Given the strategies in place, Malakoff expects the results to remain positive for the financial year ending Dec 31, 2016 (FY16).

The group's shares fell one sen or 0.7% to settle at RM1.41 as of midday trading break today, valuing it at RM7.1 billion.