PETALING JAYA: Malakoff Corp Bhd’s net profit for the fourth quarter ended December 31, 2016 plummeted by 15% to RM90.23mil compared with RM106.17mil a year ago although revenue was higher for the period under review.
This was mainly due to additional depreciation due to the change in estimate of residual values of gas-fired power plants and lower contribution from Port Dickson Power Bhd due to lower tariff of the extended power purchase agreement (PPA), the company said in a filing with Bursa Malaysia.
Revenue for the quarter was higher at RM1.71bil against RM1.38bil previously underpinned by revenue contribution by Tanjung Bin Energy Sdn Bhd pursuant to the commencement of its operation on March 21 last year.
Earnings per share was lower at 1.80 sen compared with 2.12 sen. For the quarter under review, the company declared payment of a final single-tier dividend of 3.5 sen per share from 2 sen previously.
For the full year, net profit was down by 21% to RM355.46mil as opposed to RM452.39mil, where as revenue was higher at RM6.09bil compared with RM5.30bil a year ago.
As for current prospects, Malakoff noted that results for the financial year ending December 31, 2017 would be affected by the expiry of the existing Segari Energy Ventures Sdn Bhd (SEV) PPA in June 2017.
The new SEV PPA, which would take effect upon expiration of the existing SEV PPA stipulates lower levelised tariffs as compared to the existing SEV PPA.
Notwithstanding the above, the group continues to implement strategic initiatives to secure growth opportunities for the future.
In addition, it is also focusing on enhancing efficiencies throughout its operations and hence expects the results to be sustainably positive for the financial year ending 31, December 2017.
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