Malakoff Corp Bhd recorded a revenue of RM2.262 billion for the quarter ended Dec 31, 2023 (4Q23), a decrease of 24% from the same period a year earlier.
The decline was primarily due to lower energy payment recorded from Tanjung Bin Power Sdn Bhd (TBP) impacted by the decline in applicable coal price (ACP) and the absence of revenue contribution from GB3 Sdn Bhd following the expiry of its power purchase agreement (PPA) on Dec 30, 2022.
However, these were partially moderated by higher energy payment and capacity income recorded from Tanjung Bin Energy Sdn Bhd (TBE) given the higher despatch factor and shorter duration of plant outage.
The group posted a loss after tax and minority interests (LATMI) of RM357.1 million for 4Q23 versus RM41.9 million of profit after tax and minority interests (PATMI) in the previous corresponding quarter, primarily due to a substantial share of loss from its 40% foreign associate in Bahrain – Al-Hidd Independent Water and Power Producer (IWPP) and a further impairment loss on the group's carrying value of investment in Al-Hidd IWPP.
Excluding the substantial share of loss from Al-Hidd IWPP and impairment loss on the group's carrying value of investment in Al-Hidd IWPP, Malakoff recorded a PATMI of RM72.0 million in the quarter.
For the quarter under review, Alam Flora Sdn Bhd posted a PATMI of RM23.7 million against RM0.7 million reported in the previous corresponding quarter.
For the financial year ended Dec 31, 2023 (FY23), Malakoff posted a net loss of RM884.4 million on a turnover of RM9.067 billion.
Malakoff MD/group CEO Anwar Syahrin Abdul Ajib said in the past year, the independent power producer (IPP) had faced challenges mainly due to fluctuating coal prices.
"As the leading IPP, we understand the impact of financial uncertainties on our operations due to the rising fuel costs which caused setbacks in our fuel margins. The ACP added to the challenges, and as it decreased, we had to use coal at rates higher than the average, significantly affecting our financial performance," he said in a statement.
However, he noted that even in a challenging business environment, Malakoff accomplished a significant feat domestically, generating almost 30 TWh of electricity in FY2023.
"This marks a noteworthy increase of 6.98% compared to FY2022, despite the absence of contribution from our expired GB3 gas plant. Furthermore, we have been making great progress in expanding our RE portfolio.
"We successfully achieved financial close for RP Small Hydro Kelantan in July 2023 and secured a total of 18.2 MW of rooftop solar projects throughout 2023," he said.
In December 2023, Malakoff had signed an agreement with Abu Dhabi Future Energy Company PJSC-Masdar (MASDAR) to explore opportunities and initiate solar photovoltaic power plant projects with a targeted total capacity of up to 1,000 MW.
In addition, it launched its electric vehicle (EV) charging infrastructure services in partnership with Gas Malaysia, marking its entry into this domain.
On the environmental solutions front, it has established the Recovery Initiative Sustainable EcoFacility Kuala Lumpur (RISE@KL) at Batu Caves, Gombak in September 2023.
He said Malakoff has also made significant progress in securing a waste-to-energy (WTE) plant, which will help reduce reliance on landfills, divert waste for RE generation and decrease GHG emissions significantly compared to traditional incineration.
At Johor Port, it has completed 80% of the foundation work for port recovery facilities and it has acquired a 49% stake in E-Idaman Sdn Bhd, enabling it to provide solid waste collection and public cleansing management services for Kedah and Perlis in Peninsular Malaysia.
"As we strive to integrate non-renewable sources with renewable sources, fostering a harmonious interdependence of both energies, we are championing biomass co-firing at our Tanjung Bin coal plant. This initiative holds significance as it plays as a key component within the framework of the National Energy Transition Roadmap (NETR).
"Looking ahead, we aim to expand our presence both locally and internationally by leveraging on our technical expertise. We are actively participating in competitive bids for solar projects initiated by the Malaysian Government.
"Additionally, we are open to potential mergers and acquisitions in the waste management and environmental solutions sector. Our commitment extends to continually exploring and implementing viable green technologies for the advancement of Malakoff," he said.
Malakoff shares, which closed at 66 sen on Friday (Feb 23), were trading at 62.5 sen at 11.30am today.