Malakoff 1Q net profit dips 15.8% to RM50.9mil

Malakoff managing director chief executive officer Anwar Syahrin Abdul Ajib

KUALA LUMPUR: Malakoff Corp Bhd’s net profit fell 15.8% to RM50.9mil in the first quarter ended March 31, from RM60.4mil a year ago.

The lower net profit was mainly due to lower contribution from Tanjung Bin Energy Sdn Bhd (TBE) resulting from the plant outage caused by low-pressure turbine blade failure, coupled with higher depreciation charges.

Malakoff, in a statement, said this was moderated by improved contribution from Tanjung Bin Power Sdn Bhd (TBP) given the higher ACP and better performance from Alam Flora Sdn Bhd (AFSB) as well as the group’s foreign investments in associates.

Its revenue jumped 39.4% to RM1.88bil from RM1.35bil last year primarily due to higher energy payments recorded from TBP and TBE given the higher applicable coal price (ACP).

Managing director/chief executive officer Anwar Syahrin Abdul Ajib, said it remained optimistic about the group’s performance for the rest of the year as aggressive expansion in the renewable energy (RE) space is already in the pipeline, together with focused growth in the environmental solutions' non-concession segment.

“The group recognises the importance of embedding an environmental, social and governance (ESG)-driven action plan into its work streams, which subsequently will enable a low-carbon, resource-efficient sustainability agenda to unfold new revenue opportunities in RE and the environmental solutions sphere. This is crucial as we embark on our journey towards achieving Net Zero Carbon Emissions by 2050,” he said.

To date, rooftop solar projects with a total capacity of 11 MWp have commenced operations as Malakoff makes steady progress in advancing the country’s transition to green energy sources.

The group’s solar portfolio currently stands at 39 MW, translating to a total carbon avoidance of 30,601MT/year.