Mega First earnings rise 35% to RM95.5mil in 1Q

KUALA LUMPUR: Mega First Corporation Bhd increased its net profit by 35 per cent to RM95.46 million in the first quarter ended March 31, 2024, from RM70.55 million a year earlier.

All core divisions recorded a profit before tax (PBT) improvements, the power plant developer and operator said.

The PBT of the renewable energy division rose 0.3 per cent to RM88.8 million, the packaging division’s PBT expanded by 17.6 per cent to RM8.6 million, and the resources division posted a 150.3 per cent surge in PBT to RM14.4 million.

Revenue, however, fell to RM313.48 million from RM347.35 million previously, Mega First said in a filing with Bursa Malaysia today.

"Excluding revenue of Tawau power plant (disposed of in May 2023), group revenue registered a 5.6 per cent year-on-year increase to RM313.5 million (1Q 2023: RM296.9 million) underpinned mainly by higher sales contribution from the renewable energy division (up 7.2 per cent to RM137.7 million) and the resources division (up 14.2 per cent to RM63.8 million),” it said.

On prospects, the group said that normalised profit after tax and non-controlling interest (PATNCI)(excluding share of joint venture and associates’ earnings and one-off, non-operational items) increased by 22.4 per cent year-on-year to RM97.4 million in 1Q 2024 from RM79.5 million a year earlier.

"This growth reflects the underlying strength of the group’s core businesses and the impact of acquiring an additional 15 per cent effective equity stake in Don Sahong Power Company Ltd (which operates a hydropower plant in Laos) at the end of 2023.

"We expect this growth momentum in normalised PATNCI to continue for the remaining quarters of the year, driven by expected improved earnings performance across all three core businesses,” it said.

Meanwhile, Mega First said the widening loss of oleochemicals producer Edenor Technology in 1Q 2024 was attributable to unexpected plant outage for repairs and upgrades.

"Barring any further unscheduled plant outages, Edenor's management is optimistic about a recovery in earnings in the second half of 2024, supported by anticipated improvements in market conditions,” it added.

During the quarter ended March 31, 2024, the board declared a second and final dividend of 4.25 sen per share for the financial year ended Dec 31, 2023, on Feb 28, 2024 and payable to entitled shareholders on April 19, 2024. - Bernama

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