Thursday 28 Mar 2024
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KUALA LUMPUR (May 23): Malakoff Corp Bhd reported a 46.4% drop in net profit to RM52.9 million in its first quarter ended March 31, 2018 (1QFY18) from RM98.79 million in 1QFY17, mainly due to lower contribution from its gas-fired power plant owned via its unit Segari Energy Ventures Sdn Bhd.

This resulted in lower earnings per share for 1QFY18 at 1.06 sen, compared to 1.98 sen in 1QFY17.

Malakoff said in its filing to the exchange this afternoon that the lower capacity payment from Segari follows the reduction in tariff under the extended power purchase agreement which took effect from July 1, 2017.

Lower fuel margin recorded at the Tanjung Bin Power Sdn Bhd and Tanjung Bin Energy Sdn Bhd coal plants also contributed to the decline in profitability. This was partially moderated by lower operation and maintenance costs as well as lower depreciation of C-inspection costs.

Revenue for 1QFY18 fell 9.9% to RM1.6 billion from RM1.78 billion in 1QFY18 due to the lower capacity payment from Segari.

On prospects, Malakoff said it remains positive on the overall outlook for 2018, in line with the expected growth rate of 2% per annum in the nation's power demand.

"The group is expected to benefit from the positive recovery of Tanjung Bin Energy power plant which is expected to receive normalised capacity payment from the second quarter 2018 onwards," it said.

At 3.02pm today Malakoff shares were down 5 sen or 5.6% at 84.5 sen, after 2.57 million shares changed hands, giving it a market capitalisation of RM4.37 billion.

 

 

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