KUALA LUMPUR (Aug 30): Ranhill Utilities Bhd posted a net profit of RM9 million for the second quarter ended June 30, 2021 (2QFY21), falling nearly 32% from RM13.2 million in the corresponding quarter last year, although its quarterly revenue was nearly flat.

Quarterly revenue came in at RM365.6 million compared with RM368.9 million a year ago.

On a quarter-to-quarter comparison, the group's net profit was 23.3% higher than the RM7.3 million posted in the preceding quarter ended March 31, 2021, which saw a revenue of RM363.8 million.

For the cumulative six months ended June 30, 2021, the company's net profit stood at RM16.4 million, about half of the RM31.4 million recorded in the same period last year. Revenue for the period dropped slightly to RM729.4 million from RM737 million a year ago.

It declared a share dividend distribution on the basis of half a share for every 100 existing ordinary shares held. The shares will be distributed on Sept 23.

In a filing with Bursa Malaysia, the group attributed the decrease in revenue and net profit to a lower contribution from its energy segment due to lower tariff in Ranhill Power I (RPI) post-loan completion. The RPI and Ranhill Power II are two 190-megawatt power plants which the group operates in Sabah.

Ranhill Utilities said it will continue to implement the necessary austerity measures without jeopardising operations and services.

"Given the outbreak and the political uncertainty, the negotiation on tariff hike is expected to take longer than expected to materialise. Initiatives to explore the opportunity in expanding water supply operations to other states in Malaysia are still actively sought, based on the 'Asset-Light' model and our achievement in operating the water supply services in Johor for over 20 years, since 1999," it said.

Meanwhile, its water supply subsidiary Ranhill Saj will continue to expedite pipe rehabilitation and replacement works towards the realisation of its set non-revenue water (NRW) target level of 26.3% for FY21.

"This is a significant 0.6% reduction from FY20's level. Going forward, further reduction in NRW is to be achieved via pipe rehabilitation works and active leakage control activities that have been proposed under the Rehabilitation 2020 and Rehab 2021 programmes respectively," said Ranhill Utilities.

Ranhill Utilities' share price closed at 67 sen, falling 25.6% from its 90 sen peak this year, valuing the company at RM868.26 million.