KUALA LUMPUR (May 20): Malakoff Corp Bhd posted a 33% on-year rise in net profit for the first quarter ended March 31, 2020 to RM89.18 million, boosted by the inclusion of income from newly acquired subsidiary Alam Flora Sdn Bhd (AFSB) and higher contribution from associate companies as well as lower operations and maintenance costs.

Earnings per share rose to 1.82 sen from 1.37 sen previously.

However, revenue declined by 11.63% to RM1.77 billion from RM2.01 billion in the corresponding quarter last year because of lower energy payments recorded at its Tanjung Bin Power Snd Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE) facilities.

In addition, there was a despatch factor decline at the gas plants of its unit Segari Energy Ventures Sdn Bhd (SEV) and Prai Power Sdn Bhd (PPSB) following scheduled outage maintenance works.

However,  the inclusion of revenue from AFSB, which was acquired on Dec 5, 2019, helped moderate the revenue fall, Malakoff said in a filing with the bourse. AFSB’s earnings contribution aside, Malakoff also gained from associate contributions.

These included the completion of a 12% additional interest in Shuaibah IWPP on Sept 12, 2019 and the absence of a share of losses from 40%-owned Kapar Energy Ventures Sdn Bhd, the result of provisions made up for Kapar’s investment as at Dec 31,2019.

In a separate statement, Malakoff Chief Executive Officer Datuk Ahmad Fuaad Kenali said COVID-19 has presented unprecedented challenges.

“As the Group operates in the essential services sector, it has been ‘business as usual’ for our power plants and waste management services during the Movement Control Order (MCO) period. However, reduced demand for electricity in the industrial and commercial sectors amidst the MCO has adversely impacted the despatch of electricity during the period,” he said.

Ahmad noted that AFSB has been actively involved in sanitisation and disinfection services in Kuala Lumpur, Putrajaya and Pahang to help combat COVID-19.

Malakoff shares finished unchanged at 82.5 sen today, giving it a market capitalisation of RM4.13 billion.