Ranhill Q4 earnings surge 68.8% on lower cost, interest

PETALING JAYA: Ranhill Holdings Bhd’s net profit surged 68.8% to RM22.5 million in the fourth quarter ended Dec 31, 2017, from RM13.3 million in the previous corresponding quarter, mainly due to lower overhead cost in HQ division and lower interest.
Revenue for the quarter declined slightly by 2.6% to RM372.52 million, compared with RM382.4 million in the same period a year ago.
Ranhill told the stock exchange, the decrease in quarter group revenue was mainly contributed by the decrease revenue in power segment due to lower energy sale to Sabah Electricity Sdn Bhd.
For the full year, its net profit increased 8% to RM77.9 million from RM72.12 million in the previous year, while revenue up slightly by 1.4% to RM1.48 billion, against RM1.45 billion previously.
On its prospects, the group said it foresees gradual growth in electricity demand from the company’s current 2 X 190MW plants.
Additionally, it said the company and its strategic partner are in the final phase of negotiation with regards to the 300MW Combined Cycle Power Plant in Sandakan, which will contribute additional revenue and profit to the group.
Ranhill closed higher one and a half sen or 2.16% to 71 sen with some 362,000 shares done.