April 26, 2018
Malakoff’s Revenue Increased 17% In FY2017
For Financial Year Ended 31 December 2017, the Group Generated PBT of RM588.5 Million
KUALA LUMPUR, 26 April 2018 – Malakoff Corporation Berhad (“Malakoff” or “Group”) recorded an increase of 17% in revenue to RM7,130.4 million in financial year ended 2017 (“FY2017”) from RM6,098.4 million in financial year ended 2016 (“FY2016”). This increase was contributed mainly by higher energy prices at Tanjung Bin Power Sdn Bhd (“TBP”) and Tanjung Bin Energy Sdn Bhd (“TBE”).
The Group recorded profit after tax and minority interest (“PATMI”) of RM310.0 million, compared with RM355.5 million in FY2016, primarily due to lower capacity payment registered by Segari Energy Ventures Sdn Bhd (“SEV”) following the revision of its Power Purchase Agreement (“PPA”) from 1 July 2017.
However, the decrease in PATMI was partially mitigated by higher fuel margin registered at TBP and TBE coal plants, positive contributions from overseas associates as well as compensation received under the settlement agreement signed on 4 August 2017 between TBP and IHI Corporation Japan, ISHI Power Sdn Bhd, and IHI Power Systems (M) Sdn Bhd.
Based on the financial performance in FY2017, and after considering the Group’s funding requirements, Malakoff shareholders approved a single-tier final dividend of 3.7 sen per ordinary share, at its Annual General Meeting held today. Together with the interim dividend of 2.5 sen per ordinary share paid out in October 2017, the total dividend for FY2017 is 6.2 sen per ordinary share. This represents a payout of 100% of PATMI for the financial year. At the current price of RM0.89, this represents a yield of 6.96%.
At today’s Annual General Meeting, all resolutions set out in the Notice of the Annual General Meeting dated 28 March 2018 were approved by the shareholders including the special business on the proposed renewal of authority for the Company to purchase its own shares. Based on the latest announcement of the Company, it had purchased a total of 60,693,900 number of shares as at 24 April 2018, representing 1.21% of the total share capital of the Company.
Commenting on the share buy-back, Malakoff’s Chairman, Datuk Haji Hasni Harun said, “The share price is now lower than our net asset per share, therefore as one of our efforts to help stabilise the share price, we have embarked on the share buy-back exercise.”
Datuk Haji Hasni Harun added that “Moving forward, the Group will continue to strengthen our fundamentals and explore new opportunities for growth to meet the expectations of our stakeholders. The Group will also continue to strengthen our operational capabilities intensifying our efforts on enhancing efficiency, availability and reliability of our assets.”