KUALA LUMPUR: Higher energy payment recorded from Tanjung Bin Power Sdn Bhd power plant on the back of higher applicable coal price has lifted Malakoff Corp Bhd (MCB) for the first half of this year.
MCB recorded a net profit of RM119.25 million in the first half of this year, 13 per cent higher compared with RM105.45 million in the same period a year ago.
It posted a revenue of RM3.8 billion for the six months, an increase of 7.7 per cent compared with RM3.5 billion reported in the corresponding period last year.
On quarter-on-quarter basis, net profit for the second quarter marginally decreased to RM52.3 million from RM52.5 million in the same period a year ago.
This was mainly because of lower energy payment recorded from Tanjung Bin Energy Sdn Bhd (TBE) coal plant following the plant’s 73-day scheduled maintenance outage and rectification works performed from March 31 to June 12.
The quarter’s revenue also decreased to RM1.81 billion from RM1.94 billion last year.
MCB said Malaysia’s power demand growth is expected to be sustained in 2019 while undergoing the Malaysia Electric Supply Industry (MESI) Reform 2.0 which is aimed at driving further improvements in the sector’s efficiency and competitive landscape.
These include the opening up of the retail segment, creation of a wholesale electricity market, liberalisation of fuel-sourcing and enhancement of demand-side management as well as aligning the Malaysian power sector with the global trends.
“The group is monitoring the development closely with a view to remain competitive. We had recently completed a 73-day scheduled outage at the TBE power plant to undertake major rectification works to increase its resilience and reliability going forward,” it said in a filing to Bursa Malaysia.
The scheduled outage rate of the plant is expected to normalise to below 6 per cent by the fourth quarter of this year, it added.
Chief executive officer Datuk Ahmad Fuaad Kenali said the firm will continue to focus on improving the efficiency of its power plants going forward.
He said the group had recently completed a 73-day scheduled outage at TBE power plant to undertake major rectification works and his is expected to increase the resilience and reliability of the power plant.
“As part of Malakoff’s strategic growth initiative, the recent acquisition of Khazanah Nasional Bhd’s stake in Shuaibah 3 Independent Water and Power Plant and Shuaibah 3 Expansion Independent Water Plant projects will increase the group’s overall power generation and water production capacity,” he said in a statement.
The board has approved the payment of an interim dividend of 2.44 sen per ordinary share in respect of the financial year ending December 2019.