JOHOR BARU: Ranhill Holdings Bhd expects to return to normalcy in the second half of the year as it deals with challenges due to the Covid-19 pandemic.
Group president and chief executive Tan Sri Hamdan Mohamad this could be achieved with a circular economy model and action-oriented sustainability the cornerstone of its water and power operations.
“It is vital for us to take stock and adopt strategies that will enable us to continue being resilient to face the pandemic, ’’ he said.
Hamdan said this during the 6th AGM which was conducted virtually for the first time for its shareholders in Malaysia.
The virtual AGM was held in compliance with the ongoing control movement order (MCO) which was implemented since March 18, to contain the spread of Covid-19 in the country.
He added that ensuring uninterrupted water supply as well as wastewater and power operations remain the company’s priority in Malaysia and its overseas markets.
Hamdan said a strong balance sheet coupled with innovation and technology would enable the company to find solutions that not only focus on improving cost efficiencies but also fulfill the needs of communities.
“Despite the economic uncertainties, we were able to record positive results in the last financial year, ” he said.
Hamdan said the current circumstances require a fresh perspective in dealing with the consequences of the Covid-19 crisis, like the rise of zero contact and digitalisation.
He said the fact that its core businesses were in sectors that were relatively resilient in nature would also play a pivotal role on how it moves forward in the months to come.
For the financial year ended Dec 31,2019 (FY19), Ranhill recorded a 4.5% increase in revenue to RM1.63bil against RM1.56bil in FY18.
Net profit stood at RM236.3mil, up by 35.6% compared with RM152.1mil in FY18, while profit from operations rose by 14.9% to RM276.7mil.
The group declared a total dividend payment of 5 sen per share for the year under review, amounting to a total dividend payout of RM53.4mil.
Growth in revenue was attributed primarily to a stronger performance in its environment sector by subsidiary Ranhill Saj Sdn Bhd.
The latter recorded a higher turnover of RM1.23bil in FY19, an increase of 2.87% from the previous year.
Ranhill is the sole provider of source-to-tap in Johor, the country’s third most populated state which continues to have the lowest non-revenue water (NRW) per km of pipe length nationwide.
“Ranhill Saj is one of the most efficient water operators in the country as reflected by Johor’s NRW levels of 24.1% last year, ’’ said Hamdan.
He said its water services operations provide a steady means of revenue and cash flow, thereby enabling good returns to shareholders.