Malakoff’s Q2 earnings drop 26.9% to RM86.29m

PETALING JAYA: Malakoff Corp Bhd reported a 26.92% drop in net profit to RM86.29 million for the second quarter ended June 30, 2015 from RM118.08 million, mainly due to recognition of fair valuation gains from the acquisition of the remaining 75% equity in Port Dickson Power Bhd in previous corresponding period as well as share of losses recorded by an associate company.
However, this was partly offset by lower finance cost following the redemption of the unrated junior sukuk musharakah from initial public offering proceeds in the current quarter.
Revenue for the quarter under review was down 11.62% from RM1.47 billion to RM1.3 billion, mainly due to lower capacity factor registered by all gas fired power plants and lower distillate firing.
In a filing with the stock exchange, Malakoff expects financial performance for the financial year ending Dec 31, 2015 to be better than previous year, as the Tanjung Bin power plant is expected to perform significantly better as all its three units are now available at full capacity.
Besides that, the full-year contribution from Port Dickson Power will enhance the group's profitability.
For the six-month period, Malakoff's net profit leaped 57.55% from RM120.73 million to RM190.2 million. This was on the back of a 2.29% drop in revenue from RM2.70 billion to RM2.64 billion.