KUALA LUMPUR: Malakoff Corporation Bhd's net profit rose 19.6 per cent to RM255.03 million for its financial year ended December 31, 2022 (FY22) versus RM213.22 million in FY21.
The increase was primarily due to higher contribution from Tanjung Bin Power Sdn Bhd (TBP) given the higher applicable coal price (ACP), insurance claims on the forced outage that occurred at Tanjung Bin Energy Sdn Bhd (TBE) power plant, a higher share of profit from associates and joint ventures and the absence of the write-off of Segari Energy Ventures Sdn Bhd (SEV)'s deferred expense which was registered in the previous year.
However, the company said these were partially offset by impairment losses on the carrying value of the company's investments in Al-Hidd Independent Water and Power Producer (IWPP), a 40 per cent-owned foreign associate and Kapar Energy Ventures Sdn Bhd (KEV), a 40 per cent-owned local associate as well as lower contribution from Alam Flora Sdn Bhd.
Revenue for the period increased 60.2 per cent to RM10.36 billion from RM6.46 billion, mainly attributable to higher energy payments recorded from TBP and TBE, given the higher ACP during the financial year.
For FY22, Alam Flora's net profit contribution declined by 62.6 per cent to RM72.4 million from RM193.4 million in FY21.
This was mainly due to the higher maintenance costs of its ageing fleet and the absence of gains arising from the remeasurement of financial liabilities that were recorded last year.
The company said Alam Flora would be undertaking an asset replacement exercise by the fourth quarter of this year, which will significantly enhance the efficiency of its fleet.
Malakoff managing director and chief executive officer Anwar Syahrin Abdul Ajib remained optimistic about the company's prospects as it made headway by accelerating its renewable energy (RE) growth.
"The past year has granted us with many opportunities to solidify our efforts and presence in the RE sector, and we continue to bring this momentum into 2023.
"With the latest installation of a 2.4 MWp solar photovoltaic system at Northport that was completed last month, the company has successfully achieved commercial operations of rooftop solar projects with a total capacity of 23.0 MWp to date.
"On December 2, 2022, Malakoff completed the signing of a solar power purchase agreement (SPPA) with Senai Airport to construct and operate a solar PV facility with a generating capacity of 0.615 MWp, which will contribute towards a carbon reduction of 555.2 tC02e per year," it said.
For its fourth quarter (Q4), the company recorded a net profit of RM41.86 million versus RM15.08 million in the corresponding period of the previous year.
Revenue for the quarter rose 52 per cent to RM2.97 billion versus RM1.94 billion in Q422.
Malakoff continues to focus on key strategic initiatives that will be crucial to driving the nation's sustainability aspirations as we pave the way towards a low-carbon, circular economy future.