PETALING JAYA: Ranhill Holdings Bhd says that the fast-growing wastewater treatment operations in Thailand will contribute positively to the group’s future earnings.
The company told the stock exchange yesterday that Amata Water Company Ltd had accepted a proposal from Ranhill’s indirect subsidiary, AnuRAK Water Treatment Facilities Co Ltd, to expand the capacity of one of its existing wastewater treatment plants to 15 million litres per day (mld) from 10 mld.
The contract is worth RM8.2mil.
The project is expected to take about half a year to complete, starting May 2015.
“The new upgrading project will cover the construction of an additional module of the existing wastewater treatment plant facilities built by AnuRAK to treat the increasing volume of industrial wastewater at the industrial estate,” Ranhill said.
Ranhil has four wastewater treatment plants in Thailand with a total capacity of 45.5 mld.
Additionally, Ranhill said that in October 2017, Amata Water Company had accepted AnuRAK’s proposal for a seven mld reclamation water treatment plant for its Amata City Phase 4 Industrial Estate.
By end-2018, its total water treatment capacity in Thailand will increase to 114 mld from 102 mld with the expansion of the wastewater treatment plant and the seven mld reclamation water treatment plant for Amata City Phase 4 Industrial Estate.
“The Amata wastewater treatment plant upgrading project is expected to contribute positively to the revenue and earnings of the group upon completion,” it said.
Ranhill, which saw a surge in its net profit in the fourth quarter, plans to expand its water treatment and electricity-generation business overseas to boost growth.
For the fourth quarter ended Dec 31, 2017, Ranhill’s net profit rose 69% to RM22.45mil, despite a slight drop in revenue to RM372.52mil.
The improved performance boosted its full-year earnings to RM77.86mil, or 8.76 sen a share.
Ranhill said that it has “commenced negotiations for opportunities” in Thailand, Myanmar and Australia.
“Thailand offers potential following the country’s move to regulate its water industry. Ranhill has invested in nine water treatment, wastewater treatment and water reclamation plants in Amata industrial parks with a total aggregate capacity of 102 mld.
“Additionally, there are ongoing discussions to operate water and wastewater treatment plants in the Pathein Industrial City in Myanmar, as well as in other industrial parks in the region as part of Ranhill’s plans to become a major utility player in South-East Asia,” it said last week.
Shares in Ranhill closed unchanged at 72 sen yesterday.