KUALA LUMPUR (Aug 26): Ranhill Utilities Bhd's net profit for the second quarter ended June 30, 2022 (2QFY22) fell 22.65% to RM7 million from RM9.05 million in the same period last year despite quarterly revenue growing 25.37% to RM458.38 million from RM365.61 million a year ago.

The group blamed the lower net profit mainly on recognition of higher maintenance cost by its energy segment after a planned outage for a Department of Occupational Safety and Health inspection and steam turbine maintenance.

The growth in revenue for the quarter was due to increased revenue in the group's services segment, contributed by newly acquired subsidiaries, namely Ranhill Bersekutu Sdn Bhd and Ranhill Worley Sdn Bhd (RWSB), which were only acquired in the third quarter of 2021.

Earnings per share reduced to 0.54 sen from 0.85 sen previously, its Bursa Malaysia filing on Friday (Aug 26) showed.

On a quarter-on-quarter basis, Ranhill's net profit marginally slipped from RM7.38 million despite revenue increasing by 16.51% from RM393.42 million in 1QFY22.

For the cumulative first half ended June 30, 2022 (1HFY22), Ranhill's net profit decreased by 12.04% to RM14.38 million from RM16.35 million despite 1HFY22 revenue climbing 16.78% to RM851.8 million from RM729.38 million.

Looking ahead, Ranhill said initiatives to explore an opportunity to expand water supply operations to other states in Malaysia are still actively sought, based on the "asset-light" model and the group's achievement in operating the water supply services in Johor for over 20 years, since 1999.

Its subsidiary, Ranhill SAJ Sdn Bhd, will continue to expedite pipe rehabilitation and replacement works to realise further reduction in non-revenue water (NRW) going forward.

Meanwhile, Ranhill SAJ will continue to focus on building new water treatment plants (WTPs) and upgrading or expanding existing WTPs, as well as pipe rehabilitation across Johor.

Ranhill's services sector will also engage in the provision of engineering, procurement and construction management (EPCM)-related expertise for the oil and gas sector, operations and maintenance of late-life industry assets.

The EPCM services also include the contract for ExxonMobil work pack preparation, material management, construction planning and reporting, and offshore field engineering services for ExxonMobil's offshore assets.

To this end, Ranhill said the services sector will also explore enhanced oil recovery projects, essentially the revitalisation of marginal oilfields.

"Many offshore assets in Malaysia are reaching their end of life and with that, there are [opportunities] for Ranhill to offer its operations and maintenance solutions. 

"Ranhill, through RWSB, can leverage the world-class expertise and technical skills of the Worley Group, a proven industry leader for engineering and design works in the oil and gas sector.

"Specifically, Worley has proven capabilities in successfully revitalising marginal oilfields in the UK," it said.

Additionally, the group also intends to bid for projects for which its technical capabilities and industry experience can contribute distinctive value and strategic advantage to project owners.

Shares in Ranhill finished one sen or 2.25% lower at 43.5 sen, giving the group a market capitalisation of RM563.7 million.