Malakoff to gain from growing energy demand
20 May 2021
Malakoff Corp Bhd’s earnings for its first quarter ended March 31, 2021, dropped 32.2% year-on-year (YoY) to RM60.44 million due to lower contributions from Tanjung Bin Power Sdn Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE) coal plants.
The lower contributions were due to the decline in applicable coal price (ACP) at the two coal-fired plants and decrease in despatch factor at Segari Energy Ventures Sdn Bhd’s (SEV) gas-fired plant, the independent-power producer noted in an exchange filing yesterday.
It added that higher operation and maintenance costs and lower contributions from foreign investments in associates also affected the financial performance.
Revenue for the quarter slipped 23.8% YoY to RM1.35 billion due to lower energy payments recorded given the decline in ACP at TBP and TBE, and decrease in despatch factor at SEV.
Malakoff said the government’s economic stimulus package and private consumption growth would enhance business sentiment and drive demand for power as consumption increases.
The Energy Commission had previously reported Malaysia would require 6,077MW of new capacity to meet demand growth by 2030.
Net demand is expected to grow by 0.6% per annum (pa) for 2021 until 2030 and 1.8% pa for 2031 until 2039.
The positive outlook provides an opportunity for the group as a sustainable energy player to fulfil the nation’s electricity supply requirements, particularly in key growth areas such as renewable energy; waste-to-energy (WTE); new operations and maintenance businesses; potential repowering; and new plant-up of conventional power plants.
Malakoff added that Alam Flora Sdn Bhd, a newly acquired unit under the group’s waste management and environmental services sector, continues to pursue opportunities along the value chain in the WTE, industrial hazardous waste, material recovery, recycling and e-waste.
“The group recently submitted a bid for a WTE plant in Johor with a capacity of 800 tonnes per day. The group expects overall performance to remain satisfactory for the financial year ending Dec 31, 2021,” it said.
Source: The Malaysian Reserve