Malakoff's profit down on lower capacity payment
Published on: Thursday, February 22, 2018
Kuala Lumpur: Malakoff Corporation Bhd's net profit slipped 7.2 per cent to RM376.94 million last year, affected mainly by its subsidiary Segari Energy Ventures Sdn Bhd's (SEV) revised power purchase agreement with Tenaga Nasional Bhd, effective mid-2017.However, the independent power and water producer's revenue for the financial year ended Dec 31, 2017, improved 16.9 per cent to RM7.13 billion due to higher energy payment recorded by subsidiaries Tanjung Bin Power Sdn Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE)."TBP's and TBE's coal plants recorded higher energy payment on the back of higher applicable coal price as well as higher capacity payment at TBE, which recorded 12 months' revenue for the current period compared with nine months' revenue for the corresponding period," Malakoff said in a filing with Bursa Malaysia.
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However, these were partially offset by TBE's loss in capacity payment caused by unscheduled plant outages, it added.For the fourth quarter ended Dec 31, 2017, its net profit dropped to RM58.0 million versus RM105.36 million while revenue rose by 4.7 per cent to RM1.79 billion.On prospects, Malakoff said it was well positioned to benefit from the projected demand with the successful commissioning of TBE's thermal power plant in March 2016.Stay up-to-date by following Daily Express’s Telegram channel.
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"The group will continue to pursue growth opportunities locally to expand its generation capacity, especially the renewable energy segment and continue to explore opportunistic investment overseas to complement its local generation business," it added. –Bernama
