KUALA LUMPUR (Bernama) — Malakoff Corporation Bhd chalked up a net profit of RM60.44 million in the first quarter (Q1) ended March 31, 2021, down by almost a third from the RM89.18 million recorded a year earlier.
The independent power producer attributed the weaker earnings primarily to lower contributions from Tanjung Bin Power Sdn Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE) coal plants, given the decline in applicable coal price (ACP).
“It was also dragged by lower contribution from Segari Energy Ventures Sdn Bhd (SEV) gas plant following decrease in despatch factor, higher operation and maintenance costs, as well as lower contributions from foreign investments in associates,” it said in a filing with Bursa Malaysia today.
Malakoff said during the period under review, revenue also declined to RM1.35 billion from RM1.77 billion in Q1 2020, mainly due to lower energy payments recorded, given the decline in ACP at TBP and TBE, as well as decrease in despatch factor at SEV.
On outlook, the company said it was able to maintain operational efficiency and reliability, as it continued to operate as usual with strict adherence to the standard operating procedure under the government’s conditional movement control order in response to the COVID-19 situation.
“The group is also steadfast in its cost savings and operational optimisation programmes despite the current situation,” it said.