KUALA LUMPUR: Malakoff Corp Bhd's net profit increased 33.1 per cent to RM89.18 million in the first quarter (Q1) ended March 31, 2020 from RM67 million a year ago.
Malakoff said the improved performance was primarily due to the contribution from newly-acquired subsidiary Alam Flora Sdn Bhd and higher earnings from the group's investments in associates subsequent to the completion of 12 per cent additional interest in Shuaibah.
It was also due to lower operations and maintenance (O&M) costs as well as the absence of the share of losses from the group's 40 per cent-owned Kapar Energy Ventures Sdn Bhd.
Malakoff's revenue in Q1 decreased 11.6 per cent to RM1.77 billion from RM2.0 billion previously.
This was primarily due to lower energy payment recorded given the decline in applicable coal price at Tanjung Bin Power Sdn Bhd and Tanjung Bin Energy Sdn Bhd as well as decrease in despatch factor at Segari Energy Ventures Sdn Bhd and Prai Power Sdn Bhd gas plants following scheduled outage maintenance works.
Malakoff chief executive officer Datuk Ahmad Fuaad Kenali said the country was facing unprecedented challenges in the wake of the Covid-19 crisis.
The company would continue to adapt to the new normal while ensuring efficient, stable and reliable operations.
He said as it operates in the essential services sector, Malakoff had been 'business as usual' for its power plants and waste management services during the Movement Control Order (MCO) period.
He said, however, reduced demand for electricity in the industrial and commercial sectors amid the MCO had adversely impacted the despatch of electricity during the period.
"Notwithstanding these headwinds, the group will continue to execute its strategic initiatives of focusing on operational excellence, achieving sustainable growth and strengthening its fundamentals.
"Apart from its ongoing solid waste management activities, the group's new revenue stream, Alam Flora has been actively involved in sanitisation and disinfection services around Kuala Lumpur, Putrajaya and Pahang as part of the government's efforts to curb the spread of the Covid-19 pandemic," he said.