KUALA LUMPUR (Aug 15): Ranhill Utilities Bhd's net profit surged 72.22% to RM12.06 million for the second quarter ended June 30, 2023 (2QFY2023), from RM7 million a year earlier, as its environment and energy segments reported higher earnings.
Earnings per share increased to 0.94 sen from 0.54 sen, the group's bourse filing showed.
Revenue grew 29.51% to RM593.67 million from RM458.38 million in 2QFY2022, attributed to higher recognition of water revenue contributed by its water supply subsidiary Ranhill SAJ Sdn Bhd arising from a tariff hike, as well as increased revenue from its engineering unit Ranhill Worley Sdn Bhd.
For the cumulative six-month period, the group’s net profit nearly doubled to RM23.18 million, from RM12.88 million in the same period of FY2022.
Six-month revenue rose to RM1.11 billion from RM851.80 million, contributed by all three segments — environment, engineering services and energy.
The group declared a dividend of 3.5 sen per share.
On its prospects, Ranhill Utilities said its environment segment is actively exploring initiatives to expand its water supply operations to other states through the “asset-light” model, adding that it is confident to be considered as a partner in the event any state government sought private sector collaboration.
“In line with the company’s planned expansion in the environment sector, Ranhill, along with its strategic business partners have formed a consortium as project promoters to undertake the development of the ‘source-to-tap’ project that aims to extract 5,000 litres per second (approximately 432 millions of litres per day) to supply treated water to three regions namely DKI Jakarta Selatan, Bekasi City and Bekasi Regency,” the group added.
As for its energy division, Ranhill Utilities said it has proposed an extension to the power purchase agreement for its Teluk Salut Power Plant beyond its existing concession term that expires in 2029, making it a possible solution to address the growth in energy demand in Sabah beyond 2029.
Ranhill Utilities' share price closed three sen or 5.22% higher at 60 sen, valuing the group at RM784.03 million.