The group expects overall performance to remain satisfactory for the financial year ending Dec 31, 2024.
PETALING JAYA: Malakoff Corp Bhd recorded a net profit of RM58.75mil in the third quarter ended Sept 30, 2024 (3Q24), driven by improved contributions from both of its coal-fired power plants in Johor.
The company had previously reported a net loss of RM109.42mil in 3Q23.
In a bourse filing, Malakoff said lower weighted average coal costs following stabilisation of global coal prices led to improved contributions from its Tanjung Bin Power Sdn Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE) plants.
In addition, the settlement of TBE’s final insurance claims for the failure of low-pressure turbine blades also added support to earnings.
Revenue in the July to September period rose by 3% year-on-year to RM2.22bil.
This was primarily due to the higher energy payment recorded from Segari Energy Ventures Sdn Bhd.
It was, however, partially offset by the lower energy payments recorded from TBP, following a major plant outage from June 28 to Sept 1.
Earnings per share in 3Q24 improved to 1.2 sen. No dividend was declared for the quarter.
Cumulatively, for the first nine months of financial year 2024 (9M24), Malakoff registered a net profit of RM190.99mil compared with a net loss of RM527.24mil in the previous corresponding period.
Revenue, on the other hand, was flat at RM6.81bil in 9M24.
Apart from the lower weighted average coal costs and the settlement of TBE’s final insurance claims, Malakoff said its nine-month bottomline was lifted by the gains arising from compensation for compulsory land acquisitions and lower finance costs.
Commenting on its operations, Malakoff noted that its subsidiary, Prai Power Sdn Bhd, received a one-year extension in August for its power purchase agreement of a 350 megawatt combined cycle gas turbine power plant from Tenaga Nasional Bhd
.
The extension, with an option to extend for an additional year, commenced on Sept 1, and will expire on Aug 31, 2025.
Malakoff said it is also strengthening its non-concession business under the environmental-solutions segment.
In June, it secured a five-year operation and maintenance contract for the Jabor Jerangau Leachate Treatment Plant near Kuantan, Pahang.
In October, it signed a memorandum of understanding with Blue Planet Environmental Solutions Pte Ltd to explore business opportunities in landfill rehabilitation, waste recovery and treatment.
“Based on this, the group expects overall performance to remain satisfactory for the financial year ending Dec 31, 2024,” it added.
