Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Nov 7): Ranhill Holdings Bhd’s net profit for the third quarter ended Sept 30, 2019 (3QFY19) rose 7% to RM17.63 million from RM16.49 million a year ago, thanks to higher contribution from its environment segment.

The growth was driven by an increase in water consumption as well as lower unwinding of interest, as its subsidiary Ranhill SAJ (SAJ) is now in the second year of its three-year operating period, according to its bourse filling.

This has resulted in higher earnings per share of 1.65 sen for 3QFY19 versus 1.55 sen a year ago. Quarterly revenue also rose 1.77% to RM409.06 million from RM401.94 million.

The group declared a second interim dividend of two sen per share for the financial year ending Dec 31, 2019. The entitlement and payment date will be fixed later.  

For its cumulative nine-month period (9MFY19), net profit climbed 15% to RM57.67 million from RM50.06 million in the corresponding period last year as revenue grew 9% to RM1.24 billion from RM1.14 billion.

On prospects, the group said growth in the local environment segment is expected to be supported by increasing demand for water in Johor, especially with the development of new housing and industrial areas in the State.

It also targets to own and operate gross 1,000MW (currently 380MW) power plants that deliver clean energy and 3,000 MLD water (currently 2,456 MLD) and wastewater treatment capacity, of which 400 MLD is to be from the international segment by 2022. "Domestically, our capacity is expected to grow 3% to 4% annually," it said.

The group is also taking steps to grow its power business. It is pursuing the development of new gas power plants in the ASEAN region as well as diversifying into the renewable energy business such as geothermal, large scale solar and waste-to-energy, in tandem with the Malaysian Government's aspiration to increase its generation capacity from renewable energy sources.

Meanwhile, the group said it has obtained a waiver from Pengurusan Aset Air Bhd (“PAAB”) on lease rental on RM247 million worth of water assets in relation to the Rural Water Supply project, resulting in a savings of lease rental to be paid of approximately RM15 million a year, at an increasing rate of 2% per year from Oct 1, 2019.

In addition, there will be a reimbursement in an overpayment of about RM140 million for the period from  Sept 1, 2009, until Sept 30, 2019. So Ranhill said it is in the midst of discussion with PAAB to schedule the refund of the overpayment via a reduction of future lease rental.

“As we are in the midst of finalising the scheme, the recovery of overpayment has yet to be reflected in the quarterly result,” it added.

Ranhill shares closed one sen lower at RM1.25 today, giving it a market capitalisation of RM1.33 billion. The counter has gained 51% in the past one year.

      Print
      Text Size
      Share