KUALA LUMPUR: Malakoff Corporation Bhd posted a net profit RM286.58 million for the financial year ended Dec 31, 2020 (FY20) a decline from RM320.15 million in the previous year.
Revenue also dipped to RM6.28 billion from RM7.42 billion, primarily due to lower energy payment recorded from energy subsidiaries, Segari Energy Ventures Sdn Bhd and Tanjung Bin Power Sdn Bhd, and deconsolidation of Malakoff Australia Pte Ltd's revenue upon disposal of the group's investment in December 2019.
The company in statement said these were partially moderated by revenue contribution from Alam Flora Sdn Bhd, its newly acquired subsidiary which was completed on Dec 5, 2019
Alam Flora continues to be a key driver of the group's overall profits, contributing a profit after tax and minority interests (PATMI) of RM64.6 million in the current year.
Managing director and chief executive officer Anwar Syahrin Abdul Ajib said despite a challenging year, Malakoff registered a satisfactory set of results on the back of a better performance of its associates and the maiden full year contribution of Alam Flora.
"The group continues to focus on enhancing the operational efficiency of its plants while improving its reliability
and availability, notwithstanding the ongoing Movement Control Order.
"The current Covid-19 pandemic and the recent floods in the East Coast of Malaysia have increased the demand for Alam
Flora's disinfection and post-flood cleaning services respectively," he said in a statement today.
He said in addition to the rooftop solar projects that were secured with Johor Port Bhd and Northport (Malaysia) Bhd last year, the group had recently secured yet another rooftop solar project with Pos Malaysia Bhd for a capacity of 2.34 MW.
This is in line with the government's target to increase
the current renewable energy (RE) capacity mix to 20 per cent by 2025, he said.
Aside from participating in the 4th cycle of the large-scale solar (LSS4) tender that was announced by the government in
May 2020, the group, through its 60 per cent owned indirect subsidiary Southern Biogas Sdn Bhd, was also awarded a feed-in tariff (FiT) from Sustainable Energy Development Authority (SEDA) to develop a 2.4mw biogas power plant in Johor.
According to Bursa Malaysia filing, Malakoff said economic recovery remained an absolute priority and the company will continue to play a key role as an essential service provider to drive growth with its power plants and waste collection operation together with the ongoing cost-saving measures during this challenging period.