KUCHING: Malakoff Corporation Bhd (Malakoff) posted lower turnover and earnings in the second quarter of 2015 (2Q15) ended June 2015.
The company told here the oher day that revenue in 2Q15 declined by 11.6 per cent year-onyear (y-o-y) to RM1.29 billion from RM1.46 billion in 2Q14.
Malakoff added net profi t in 2Q15 decreased by 26.9 per cent y-o-y to RM86.29 million compared with RM118.08 million in 2Q14.
Malakoff in its accounts notes in conjunction with the release of the group’s 2Q15 results explained that the lower revenue recorded in 2Q15 was attributed to lower capacity factor registered by all its gas fi red power plants and lower distillate firing, which was offset by the consolidation of Port Dickson Power’s (PDP) revenue pursuant to the completion of its acquisition in April 2014.
Additionally, Malakoff pointed out that the lower turnover was also partly due to the usual schedule outages taken by certain power plants as part of its maintenance cycle.
The group observed that its profi t before tax and net profi t was lower due to recognition of fair valuation gains from its acquisition of the remaining 75 per cent equity in PDP in corresponding quarter and share of losses recorded by an associated company which was partly offset by lower fi nance cost following the redemption of an Islamic bonds from initial public offering proceeds in 2Q15.
As for the first half of 2015 (1H15), Malakoff noted the group recorded lower revenue but higher earnings as compared to the previous year corresponding period.
The company said turnover in 1H15 dipped by 2.3 per cent y-o-y to RM2.64 billion from RM2.7 billion in 1H14.
Nonetheless, Malakoff said net profit jumped by 58 per cent y-o-y to RM190.2 million from RM120.73 million.
Commenting on the group’s prospects, Malakoff said, “The group expects its performance for the financial year ending December 31 to be better than the previous year due to several factors.
“Those include amongst others the Tanjung Bin power plant which is expected to perform significantly better as all its three units are now available at full capacity and the gas-fired power plants are expected to continue to perform well.
“Besides, the full year contribution from PDP pursuant to its acquisition in April 2014 will further enhance the group’s profitability.
“Moreover, the group’s finance costs will be lower with the redemption of the Unrated Junior Sukuk Musharakah from the initial public offering proceeds,” Malakoff believed.
