April 19, 2017
Malakoff's Revenue Increased 15% in FY2016
MALAKOFF’S REVENUE INCREASED 15% IN FY2016
For Financial Year Ended 31 December 2016 the Group Generated PBT of RM637 Million
KUALA LUMPUR, 19 April 2017 – Malakoff Corporation Berhad (“Malakoff” or “Group”) 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 (“FY2015”). 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, a 21% decline from RM452.4 million 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.
Performance of FY2016 was also affected by higher maintenance costs offset by higher contributions from the Group’s associates, insurance claims on rotor replacement, and lower finance costs following the redemption of the unrated Junior Sukuk Musharakah in FY2015.
In view of the financial performance in FY2016, and after considering the Group’s funding requirements, Malakoff’s shareholders approved a single tier final dividend of 3.5 sen per ordinary share at its Annual General Meeting held today. Together with the interim dividend of 3.5 sen per ordinary share paid out on 4 October 2016, the total dividend for FY2016 is 7.0 sen per ordinary share. This represents a payout of 98% of PATMI for the year.
Malakoff’s key achievements in FY2016 were:
• The newly built 1,000MW coal-fired Tanjung Bin Energy Power Plant completed testing and commissioning and subsequently achieved its commercial operations date (“COD”) on 21 March 2016;
• The three-year extension of Port Dickson Power’s PPA, awarded by Tenaga Nasional Berhad (“TNB”) in December 2015, came into effect in March 2016; and
• The Group’s venture in the Sultanate of Oman, the Al Ghubrah Independent Water Project achieved its COD on 19 February 2016. The project is expected to deliver up to 191,000 m3/day of water over a period of 20 years.
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.”