KUALA LUMPUR (Nov 26): Malakoff Corp Bhd’s net profit for the third quarter ended Sept 30, 2021 (3QFY21) dropped 42.96% to RM67.16 million from RM117.73 million in the immediate preceding quarter, on lower contribution from Tanjung Bin Power Sdn Bhd's (TBP) coal plant in Johor. 

This was also due to the decline in the dispatch factor, a lower contribution from foreign investment in associates, mainly from Al-Hidd IWPP in Bahrain, due to higher operation and maintenance costs associated with a provision for slow-moving inventory for certain gas-fired power plants as the plants approach the end of the power purchase agreement.

In a bourse filing, Malakoff said its quarterly revenue slipped slightly to RM1.5837 billion in 3QFY21 from RM1.5844 billion in 2QFY21. 

In contrast, its net profit grew 32.2% on a yearly basis from RM50.8 million in 3QFY20 on higher contributions from TBP and Tanjung Bin Energy Sdn Bhd's coal plants in Johor on the back of higher applicable coal price, higher contributions from Alam Flora Sdn Bhd and foreign investments in associates coupled with lower operation and maintenance costs.

Revenue in 3QFY21 was up by 6.8% from RM1.48 billion in the same quarter last year, it said.

For the cumulative nine months ended Sept 30, 2021 (9MFY21), net profit increased by 0.16% to RM245.34 million from RM244.94 million a year ago. 

9MFY21 revenue fell 5.12% to RM4.52 billion compared with RM4.76 billion a year earlier. 

Looking ahead, the group expects its overall performance for the financial year ending Dec 31, 2021 (FY21) to remain satisfactory. 

“Under the 12th Malaysia Plan (12MP), renewable energy (RE) and energy efficiency (EE) initiatives will be scaled up to transit to a low-carbon nation. The recently announced Budget 2022 also reaffirms the government’s commitment to strengthen the planned sustainability agenda. These developments augur well for the group’s RE and environmental services focus areas under its overall strategic growth plan.

“In mid-July 2021, the group acquired land in Port Klang as part of the proposed development of a recovery facility for waste management and expansion of its environmental business activities. The group also signed a memorandum of understanding (MoU) with Koperasi Polis Diraja Malaysia Bhd (KPDRM) to jointly undertake a feasibility study on the development of rooftop solar projects,” Malakoff added. 

At the 12.30pm break, Malakoff was unchanged at 76 sen, with a market value of RM3.75 billion.