Malakoff relies on efficiency and savings
Independent power producer expects overall performance to remain satisfactory for fiscal 21
By NUR HANANI AZMAN / photo credit: ANNUAL REPORT
MALAKOFF Corp Bhd would continue to focus on improving the operational efficiency of its power plants and waste management business while implementing cost-cutting measures to weather the Covid-19 pandemic storm this year.
The independent power producer, being a provider of essential services amid the Covid pandemic, expects overall performance to remain satisfactory for the fiscal year ending December 31, 2021 (FY21).
“As the country’s vaccination program accelerates, economic sectors are expected to gradually reopen and strengthen corporate sentiment.
“As such, Malaysia’s resumption of growth is expected to pick up broadly towards the end of the second half of 2021 and accelerate further through 2022,” Malakoff said in an exchange brief last Friday.
The group has made significant inroads in its expansion of renewable energies, particularly in the rooftop solar segment.
On April 14, 2021, the group signed a Solar Power Purchase Agreement (SPPA) with AEON Co (M) Bhd for the development and use of a solar power system at AEON Taman Maluri Shopping
Center with an installed capacity of 2.11 megawatts-peak (MWp).
On July 13, 2021, Malakoff finalized the signing of six SPPAs to develop rooftop solar energy systems with DRB-Hicom Bhd with a total capacity of 13.41 MWp.
Malakkoff said these projects, along with secure rooftop solar projects with renowned players in the logistics industry, namely Johor Port Bhd, Northport (M) Bhd and Pos Malaysia Bhd, will generate 33,243 MWh per year and neutralize 23,070 tonnes of carbon emissions per year.
Malakoff’s net profit for its second quarter ended June 30, 2021 (2Q21), increased 12.2% year-on-year to RM 117.73 million from RM 104.96 million last year, mainly due to of Tanjung’s higher contribution.
Bin Power Sdn Bhd coal-fired power station due to the higher applicable coal price.
The independent water and power producer also attributed the higher profits to higher contributions from Alam Flora Sdn Bhd and foreign investments in associated companies.
“However, these were partially offset by a lower contribution from the Tanjung Bin Energy Sdn Bhd coal-fired power plant, given the absence of a settlement agreement with Alstom Power Systems and GE Power Services (M) Sdn Bhd for losses and damages incurred in connection with events of default that occurred between April 2017 and June 2019 ”, declared the group in the stock market file.
Its turnover in 2Q21 increased by 5.2% at RM 1.58 billion during the period compared to RM 1.51 billion for the same period a year ago, mainly due to the higher energy payments recorded by the two coal-fired power plants.
However, these were partially offset by lower energy payments recorded by Segari Energy Ventures Sdn Bhd and Prai Power Sdn Bhd, given the decrease in the shipping factor.
Basic earnings per share for the quarter were 2.41 sen, compared to 2.15 sen for the corresponding period last year.
The Board of Directors recommended an interim dividend of 3.10 sen per ordinary share for fiscal year 21, payable on October 20.
Malakoff shares closed 0.61% higher at 83 sen last week, valuing the company at RM 4.15 billion.