Malakoff posts stronger 4Q profit on disposal gain, plans 4.11 sen dividend

KUALA LUMPUR: Malakoff Corp Bhd’s net profit for the fourth quarter ended Dec 31, 2019 (4QFY19) rose 24.5% to RM106.41 million from RM85.48 million a year earlier, lifted by a one-off gain of RM557 million from the disposal of the group’s investment in Malakoff Australia Pty Ltd, completed on Dec 18, 2019. Consequently, its earnings per share rose to 2.18 sen from 1.75 sen previously, Malakoff’s filing with Bursa Malaysia yesterday showed.

The group also proposed a final dividend of 4.11 sen per share in respect of FY19, pushing its total dividend payout for the year to 6.55 sen if approved by shareholders, compared with 5.6 sen for FY18.

The stronger quarter came despite revenue falling 7.7% to RM1.74 billion from RM1.89 billion, following a lower energy payment from Tanjung Bin Power Sdn Bhd after a decline in applicable coal price.

However, the fall in Tanjung Bin’s contribution was partially moderated by a higher energy payment from Segari Energy Ventures Sdn Bhd, and a one-month revenue contribution from its new subsidiary Alam Flora Sdn Bhd. For FY19, Malakoff’s net profit rose 16.6% to RM320.15 million from RM274.43 million for the year ago. Its revenue climbed to RM7.42 billion from RM7.35 billion previously.

Malakoff said the Malaysian Electricity Supply Industry will still evolve, with an emphasis on industry liberalisation, renewable energy (RE) and energy efficiency initiatives.

“In this context, the group will continue to expand its footprint in the RE sector in line with the government’s target to increase the RE generation capacity to 20% by 2025.

“In December 2019, the group won bids for its small hydropower projects with a total capacity of 55 megawatts in Pahang through a competitive Feed-in Tariff e-bidding by the Sustainable Energy Development Authority,” it said.

Malakoff said it will still drive operational excellence in all its power plants to enhance reliability and efficiency. “Our Tanjung Bin Energy coal power plant had successfully achieved an unscheduled outage rate below the 6% threshold as at Dec 31, 2019 after completing major maintenance and rectification works during the year.

Malakoff shares closed 2.5 sen or 2.86% higher at 90 sen yesterday, with a market capitalisation of RM4.4 billion.