Malakoff's profit down 21% to US$80.9m

No thanks to lower contributions from Port Dickson Power Berhad.

Malakoff Corporation Berhad recorded an increase of 15% in revenue to RM6,098.4 million in financial year 2016 (“FY2016”) from RM5,302.0 million in financial year 2015. This increase came on the back of the revenue contribution by Tanjung Bin Energy Sdn Bhd pursuant to the commencement of its commercial operation on 21 March 2016.

The Group turned in a profit after tax and minority interest (“PATMI”) of RM355.5 million (US$80.9m), a 21% decline from RM452.4 million (US$102.9m) in FY2015. The decrease in PATMI was due to additional depreciation resulting from the change in estimate of residual values of gas-fired power plants, plus a lower contribution from Port Dickson Power Berhad due to lower tariff of the extended Power Purchase Agreement (“PPA”).

The change in estimate of the residual value starting from FY2016 was needed based on the changing landscape of the domestic power generation industry wherein the dependency on gas in future generation mix will be less than coal.

Malakoff’s Chairman, Tan Sri Dato’ Seri Syed Anwar Jamalullail said, “Moving forward, the Group will continue to leverage on a business model designed to ensure sustainable growth well into the future. We are proactively working with the Government to ensure our future growth aspirations within Malaysia is in alignment with the country’s energy needs.”