KUALA LUMPUR (May 31): Ranhill Utilities Bhd’s net profit rose marginally to RM7.38 million for the first quarter ended March 31, 2022, from RM7.298 million a year ago.

Revenue increased 8.15% to RM393.42 million from RM363.76 million, on the back of improved revenue contribution from its services segment, the group said in a filing.  

The services segment revenue increased by RM28.5 million year-on-year to RM46.3 million, mainly contributed by the units it acquired last year, namely Ranhill Bersekutu Sdn Bhd and Ranhill Worley Sdn Bhd.

Ranhill’s environmental segment generated a revenue of RM287.4 million, a 2.21% decrease from RM293.9 million a year ago, as a result of lower contribution from developers to its unit Ranhill SAJ Sdn Bhd, arising from lesser new development in Johor.

The energy segment posted a 14.59% increase in revenue to RM59.7 million from RM52.1 million, underpinned by higher energy repayment fuel revenue from its units to compensate for the higher diesel consumption (pass through cost) during Petronas’ gas curtailment during the period.

On its prospects, Ranhill said the energy division has proposed an extension to the power purchase agreement for its Teluk Salut Power Plant beyond its existing concession term that expires in 2029.

As for its services sector, with the easing of containment measures, it expects the sector to be able to ride on the economic recovery, which will in turn bring greater opportunities to the group.

Meanwhile, in line with its expansion in the environmental sector, the group has formed a consortium with business partners to undertake bidding for the development of the "Source-to-Tap" project in Indonesia.

“The government of Indonesia recently upgraded the status of the proposal to national strategic project, thus giving it priority and importance,” noted Ranhill.

Shares in Ranhill finished unchanged at 49 sen on Tuesday (May 31), giving the group a market capitalisation of RM628.65 million.