Ranhill to expand overseas business to boost growth
14 Feb 2018
Ranhill Holdings Bhd has started talks to expand its water treatment and electricity generation business overseas to boost growth, as earnings surged in the fourth quarter ended Dec 31.
Net profit rose 69% to RM22.45mil, the company said in a filing with Bursa Malaysia yesterday, despite a slight drop in revenue to RM372.5mil.
The improved performance boosted its
fullyear earnings to RM77.86mil, or 8.76 sen a share.
Ranhill said it would pay a second interim dividend of two sen a share today and has proposed a final payout to two sen a share to be approved by shareholders at its upcoming AGM.
“We foresee gradual growth in
electricity demand from the company’s current 2X 190MW plants,” it said,
commenting on its growth outlook for 2018.
“The company and its strategic partner are in the final phase of negotiation with regards to the 300MW combined cycle power plant in Sandakan, Sabah which will contribute additional revenue and profit to the group,” it added.
Ranhill, on Monday, announced that a subsidiary involved in the Sandakan project had received a conditional letter of award from the Energy Commission to develop the power plant.
Meanwhile, the company has “commenced negotiation for opportunities” in Thailand, Myanmar and Australia.
Ranhill said growth in the local environment segment is expected to be supported by the increasing demand for water in Johor.
In the international environment sector, Ranhill said its “strong partnership” with SIIC Environment Holdings Ltd of China had resulted in lower project loans interest with an average interest saving of approximately 1% per annum.
“The joint venture is now poised to commence exploring new opportunities for industrial waste water concession contracts and other potential water related works in China and South-East Asia under the Belt and Road Initiative,” it said.
Source: The Star