KPower registers lower Q1 profit due to lockdown woes

KUALA LUMPUR: Renewable energy firm KPower Bhd was off to an uneasy start as strict Covid-19 control measures in Malaysia and Indonesia impacted its operations in the the first quarter ended Sept 30 fiscal year.

Net profit dropped 61% to RM3.1mil, while revenue declined 30% to RM43.8mil.

"The decrease is due to Movement Control Order (MCO) with restrictions as enforced by Malaysian and Indonesian Government which disrupted the construction progress of the Group's projects in Malaysia and Indonesia," the company said in a filing today.

The company said that despite the near halt in economy with the full lockdown announced in June, KPower has managed to post a positive result for the quarter.

"The positive result was underpinned by its main segment, the construction related activities which is mostly contributed by sustainable energy and utilities projects," it said.

KPower has recently secured its first asset ownership venture through the successful bid under the fourth round of Large-Scale Solar Programme (LSS4) for the development of 50MW large-scale solar photovoltaic (PV) plant sited in Pahang.

"We are confident and optimistic in securing more business not only in hydro and solar renewable energy segment but also on other construction related businesses," it said.