KUALA LUMPUR (Aug 28): Malakoff Corp Bhd (KL:MALAKOF) on Wednesday reported its second consecutive quarterly net profit despite lower revenue, on the back of higher earnings contributions from two Johor-based power plants amid reduced coal costs, coupled with a compensation received for compulsory land acquisition.

Net profit for the three months ended June 30, 2024 (2QFY2024) came in at RM93.6 million, compared to a net loss of RM318.7 million a year ago, according to the independent power producer's bourse filing.

Quarterly revenue fell 2.4% year-on-year to RM2.31 billion from RM2.37 billion due to reduced energy payments from the two power plant firms, Tanjung Bin Power Sdn Bhd and Tanjung Bin Energy Sdn Bhd, in line with a decline in applicable coal prices.

This decrease was partially offset by higher energy payments from Segari Energy Ventures Sdn Bhd due to a higher dispatch factor, the group said.

Malakoff declared an interim dividend of 2.23 sen per share, up from 1.5 sen per share a year ago, payable on Oct 25.

On a quarter-on-quarter basis, net profit more than doubled from RM38.7 million, with revenue increasing slightly from RM2.28 billion.

For the first six months of FY2024, Malakoff’s net profit was RM132.2 million compared to a net loss of RM417.8 million in the previous corresponding period, while revenue decreased 1.2% to RM4.59 billion from RM4.65 billion.

Looking ahead, Malakoff expects a strong overall performance for the remainder of FY2024, bolstered by several partnerships established earlier this year.

These include Malakoff Power Bhd, a wholly owned unit, signing a memorandum of understanding with Korea South-East Power Company in July to exchange best practices in power plant operations and maintenance, including renewable energy integration and biomass fuel planning.

In April, Malakoff also partnered with China Northeast Electric Power Engineering & Services Co Ltd to provide technical support for combined cycle power plant projects in Bangladesh.

Malakoff's shares closed 3.5 sen or 4% lower at 84 sen on Wednesday, giving the group a market valuation of RM4.18 billion.