PETALING JAYA: Malakoff Corp Bhd reported a 13.2% increase in net profit to RM94.49 million for the third quarter ended September 30, 2019 compared with RM83.5 million in the previous corresponding period, thanks to lower income tax expense.
Revenue, however, dropped 2.8% to RM1.86 billion from RM1.91 billion, primarily due to lower energy payment recorded from Tanjung Bin Power Sdn Bhd coal plant given the lower dispatch factor following the plant’s scheduled maintenance outage performed between August 24, 2019 and October 21, 2019.
Malakoff’s nine-month net profit expanded 13.1% to RM213.75 million from RM188.95 million in the same period a year ago, with revenue rising 4% to RM5.68 billion from RM5.46 billion.
The group said the recently tabled Budget 2020 reiterated the government’s aspiration to migrate from the present power purchase agreement mechanism to an open market system in line with its recent announcement of the 10-year masterplan to reform the domestic power supply industry.
“The group will continue to monitor the development with a view to capitalise on the opportunities presented by the reform especially in the area of renewable energy. The group also continues to focus on enhancing the efficiency and reliability of its assets.”
“To this end, our Tanjung Bin energy plant had undertaken a 73-day scheduled outage in the first half of 2019 and its unscheduled outage rate has now reduced to below 6%.”
Malakoff also noted that as part of the effort to further optimise its capital structure and unlock the value of its assets, the group had on October 29, 2019 entered into a conditional share and unit purchase agreement with AMP Capital of Australia to dispose of its entire 50% participating interest in Macarthur Wind Farm, Australia for AU$356.85 million.
“Based on the foregoing, the group expects overall performance to remain satisfactory for the financial year ending December 31, 2019.”
At the noon break, Malakoff’s share price gained 1.5 sen to 86 sen on 327,300 shares done.
