Malakoff first quarter bottom line improves

PETALING JAYA: Malakoff Corp Bhd's net profit increased 17.5% to RM98.8 million in the first quarter (Q1) ended March 31, 2017, from RM84.1 million in the previous corresponding quarter, mainly due to higher fuel margin and contribution from its associates.
In a filing with Bursa Malaysia today, the group said the higher earnings were offset by additional depreciation due to the change in estimate of residual values of gasfired power plants and higher maintenance costs.
Revenue was up 32.5% to RM1.78 billion, compared with RM1.34 billion in the same period last year, mainly due to three months revenue contribution from Tanjung Bin Energy Sdn Bhd during the period, compared to only ten days of revenue contribution previously, following its commencement on March 21, 2016.
On prospects, the group said its results for the financial year ending Dec 31, 2017 (FY17) will be affected by the expiry of the existing Segari Energy Ventures Sdn Bhd (SEV) power purchase agreement (PPA) in June 2017.
Nevertheless, the group said it is continuing with its strategic initiatives to secure growth opportunities in the power sector and broaden its earnings base in complementary business sectors for the future.
In addition, the group said it is focusing on enhancing efficiencies throughout its operations and expects the results to remain positive for FY17.