KUALA LUMPUR: Malakoff Corp Bhd’s net profit fell 32.9 per cent to RM62.83 million in the second quarter ended June 30, 2025 (2Q25) from RM93.58 million a year ago.
The group said this was mainly due to a negative fuel margin at Tanjung Bin Power Sdn Bhd (TBP).
The power plant was largely affected by the decline in applicable coal price (ACP) and the one-off gain from compensation for compulsory land acquisition recognised in the same quarter of 2024.
These were partially offset by the reversal of a net realisable value (NRV) provision for coal inventories at TBP, following favourable developments in coal prices amid expectations of a gradual increase in global coal demand through 2025.
Malakoff’s quarterly revenue fell 12.6 per cent to RM2.02 billion from RM2.31 billion previously.
Its earnings per share came in lower at 1.29 sen compared to 1.92 sen in 2Q24.
For the first half of financial year 2025 (1H25), Malakoff’s net profit declined to RM96.82 million from RM155.78 million a year ago, while revenue fell to RM4.05 billion from RM4.59 billion previously.
The group recommended an interim dividend of 1.50 sen per share for the financial year ending Dec 31, 2025, payable on Oct 27 to shareholders.
The group expects its overall performance to remain satisfactory for the financial year ending Dec 31, 2025.
Malakoff said it participated in a request for proposal (RFP) for the development of a Battery Energy Storage System (BESS) with a capacity of 100 megawatt/400 megawatt-hour.
“The BESS programme which is expected to operate for a period of 15 years, commencing in 2027 will support the national sustainability agendas by facilitating the integration of intermittent renewable energy, enhancing grid stability and enabling decarbonisation in the power and transport sectors,” it said.
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