KUALA LUMPUR: Malakoff Corporation Bhd posted a net loss of RM884.36 million for the year ended Dec 31, 2023 (FY23) from a net profit of RM225.03 million a year ago.
The company's revenue fell 12.45 per cent to RM9.07 billion in FY23 from RM10.36 billion last year.
This was primarily due to a substantial share of loss from its 40 per cent foreign associate in Bahrain - Al-Hidd Independent Water and Power Producer (IWPP) and further impairment loss on the company's carrying value of investment in Al-Hidd IWPP.
Excluding the substantial share of loss from Al-Hidd IWPP and impairment loss on the company's carrying value of investment in Al-Hidd IWPP, Malakoff recorded a net profit of RM72.0 million in yhe fourth quarter of FY23.
For Q4, Malakoff recorded a net loss of RM357.12 million from RM41.86 million previously.
Its revenue for the quarter fell 23.9 per cent to RM2.26 billion from RM2.97 billion.
Malakoff said this was due to lower energy payment recorded from Tanjung Bin Power Sdn Bhd (TBP), which was impacted by the decline in Applicable Coal Price (ACP) and the absence of revenue contribution from GB3 Sdn Bhd (GB3) following the expiry of its power purchase agreement (PPA) on Dec 30, 2022.
However, it said these were partially moderated by higher energy payment and capacity income recorded from Tanjung Bin Energy Sdn Bhd (TBE) given the higher despatch factor and shorter duration of plant outage.
For the quarter under review, Alam Flora Sdn Bhd (Alam Flora) posted a net profitI
of RM23.7 million against RM0.7 million reported in the previous corresponding quarter.
On the operational front, Alam Flora's total waste collected fell from 531,700 tonnes in Q4 FY2022 to 304,100 tonnes in Q4 FY2023, representing a 43 per cent decline.
Malakoff said this was mainly due to the expiry of the Kepong Transfer Station and Cameron Highlands Mini Incinerator.
Notwithstanding this, recyclable material collected increased 14.6 per cent in the period under review, testament to the positive impact of the company's efforts towards circular economy," it said.
Malakoff managing director and group chief executive officer Anwar Syahrin Abdul Ajib believes in the company's commitment, despite encountering challenges.
Anwar said Malakoff's strategic initiatives aimed at advancing Malaysia's transition to a greener future while steadfastly maintaining energy security.
"This achievement reflects Malakoff's dedication to corporate responsibility and sustainable practices in the face of adversities," he said.
Looking ahead, Anwar said Malakoff aims to expand its presence both locally and internationally by leveraging on its technical expertise.
"We are actively participating in competitive bids for solar projects initiated by the Malaysian Government.
"Additionally, we are open to potential mergers and acquisitions (M&As) in the waste management and environmental solutions sector.
"Our commitment extends to continually exploring and implementing viable green technologies for the advancement of Malakoff," he added.