Ranhill posts lower Q1 net profit, revenue

KUALA LUMPUR: Ranhill Utilities Bhd's net profit dropped 14.8 per cent to RM18.19 million in the first quarter (Q1) from RM21.37 million a year ago, on lower environment and power businesses.

Ranhill said its power business was impacted by a reduction in the Capacity Payment Revenue Capacity Rate Financial (CPcrf) tariff from RM35.91 per kilowatt (kW) per month to RM22.24 per kW per month.

This is as per the Power Purchase Agreement (PPA) upon full repayment of the project loan for Ranhill Powertron Sdn Bhd. 

"Despite the challenging environment brought about by the global Covid-19 pandemic, it is encouraging to note that the group was able to turn in sustained earnings. 

"Our resilience is underpinned by the fact that our core businesses are in the environment and power sectors, allowing for continuity of operations and services during the Movement Control Order (MCO) period," Ranhill group president and chief executive Tan Sri Hamdan Mohamad said.

Ranhill's revenue in Q1 eased 9.1 per cent to RM368.28 million from RM405.05 million.

With the Covid-19 pandemic and the country's control measure to prevent spreading of the virus via MCO, the group expects it be a challenging year ahead.

It will exercise caution in managing its business to ensure continuous recurring and stable source of cashflow is generated to support the operations and optimise the value of the stakeholders. 

"Management will implement the necessary austerity measures without jeopardising operations and services. 

"Given the outbreak and the recent change in the country's administration, the negotiations on tariff hike is expected to take longer than expected to materialise," it said.

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