KUALA LUMPUR: Malakoff Corporation Bhd
reported a 20.3% decline in earnings to RM103.26mil in the second quarter ended June 30, 2017 and it expects results for FY17 to be affected by the revised power purchase agreement (PPA).
The independent power producer said on Monday the earnings had fallen from RM129.63mil a year ago. Its revenue rose 13.6% to RM1.73bil. Earnings per share were 2.07 sen compared with 2.59 sen. It announced a dividend of 2.5 sen a share compared with 3.5 sen a year ago.
“The results for the financial year ending Dec 31, 017 will be affected by the lower capacity payment in the new revised Segari Energy Ventures Sdn Bhd’s PPA commencing July 1, 2017,” it said.
Commenting on the second quarter results, it said the higher revenue was mainly due to higher applicable coal price and higher capacity factor registered by Tanjung Bin Power’s power plant, which was partly offset by lower revenue from Tanjung Bin Energy’s power plant due to outages during the current quarter.
Malakoff said that profit before tax for 2Q17 was RM153.1mil, which was lower than RM158.9mil a year ago.
“This was mainly due to lower contributions from Tanjung Bin Energy’s power plant during the current quarter and insurance claim on rotor replacement which was recorded in the corresponding quarter. These were partly offset by higher contribution from our associates and lower maintenance costs during the current quarter,” it said.
Malakoff said for the first half, its earnings fell 5.4% to RM202.05mil from RM213.72mil in the previous corresponding period. Its revenue rose 22.4% to RM3.51bil from RM2.87bil.
This was mainly due to higher applicable coal price and higher capacity factor registered by Tanjung Bin Power’s power plant.
It also said in Q2, 2017, the group recorded a lower profit before taxation of RM153.1mil in the current quarter compared to RM174.7mil in Q1, 2017.
“This was mainly due to lower contribution from Tanjung Bin Energy’s power plant and lower fuel margin. These were offset by lower maintenance costs in the current quarter.
In the first half of FY17, it said there were also six months revenue contribution by Tanjung Bin Energy’s power plant compared to three months revenue for YTD16.
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