Ranhill profit up, pursuing new gas power plants


  • Corporate News
  • Friday, 08 Nov 2019

This brought its nine-month net profit to RM57.67mil, representing a 15.2% increase as compared to the same period last year. (Filepic shows a Ranhill water treatment plant.)

PETALING JAYA: RANHILL HOLDINGS BHD has registered a 6.9% year-on-year increase in net profit to RM17.6mil for its third quarter ended Sept 30, led by higher contribution from its environment segment.

This brought its nine-month net profit to RM57.67mil, representing a 15.2% increase as compared to the same period last year.

According to a Bursa Malaysia filing, Ranhill’s environment segment saw higher volume of water consumption and developer contribution from Country Garden Pacificview Sdn Bhd for a new development project.

Additionally, the group recorded a lower unwinding interest, as its subsidiary Ranhill SAJ Sdn Bhd is in its second year of its operating period.

During the quarter in review, Ranhill obtained a waiver from Pengurusan Aset Air Bhd (PAAB) on the lease rental on RM247mil of water assets in relation to the Rural Water Supply project, resulting in a savings of lease rental to be paid of approximately RM15mil annually, at a 2% increase rate per year from Oct 1,2019.

In addition, there will be a reimbursement in an overpayment of approximately RM140mil for the period from Sept 1,2009 until Sept 30,2019.

“The company is in the midst of discussions with PAAB to schedule the refund of the overpayment via a reduction of the future lease rental.

“As we are in the midst of finalising the scheme, the recovery of the overpayment has yet to be reflected in the quarterly results, ” said Ranhill.

Meanwhile, Ranhill’s non-revenue water (NRW) management services have completed several regional water-related contracts valued at RM800mil, saving more than 500 million litres per day (MLD) of treated water through NRW contracts.

The group said its wholly owned unit - Ranhill Water Services Sdn Bhd (RWS) - stands a good chance of securing local NRW contracts via open tenders, being a reputable NRW company.

On July 1,2019, RWS secured a two-year NRW reduction contract in Johor worth RM151.5mil.

This contract is its fifth successive NRW project in the state since 2011, through a competitive open tender process.

Ranhill noted that RWS has been undertaking NRW projects in Johor successfully since its inception in 2005 and has reduced NRW from over 37% in 2005 to 22.85% as at April 30,2019.

Going forward, Ranhill is working towards achieving growth in its power business by pursuing the development of new gas power plants in the Asean region, as well as diversifying into the renewable energy business such as geothermal, large-scale solar and waste-to-energy.

The board of directors of Ranhill has declared a second interim dividend of 2.0 sen per ordinary share in respect of financial year 2019.

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Ranhill , Q3 , profit , up , gas , power , plants , PAAB , water treatment ,

   

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