KUALA LUMPUR (Feb 18): Ranhill Utilities Bhd's (KL:RANHILL) net profit fell 8.3% to RM17.82 million for the fourth quarter ended Dec 31, 2024, from RM19.43 million a year earlier, due partly to a cost overrun at its unit Ranhill Worley Sdn Bhd in relation to the P82 project.

P82 is a floating, production, storage and offloading vessel for which Ranhill Worley had secured a US$27 million (RM124 million) contract to perform detail design engineering services for Brazil's state-owned oil and gas company Petrobras in November 2022.

The quarterly net profit was also hit by higher finance costs, which rose 43.3% to RM27.12 million from RM18.93 million a year earlier. Income tax expense and zakat also went up 28.4% to RM16.46 million from RM12.82 million. Elsewhere, Ranhill Utilities' other income also dropped 61.4% to RM43.02 million from RM111.35 million.

Earnings per share fell to 1.37 sen from 1.51 sen a year ago, the group’s bourse filing showed.

Quarterly revenue declined 6.15% to RM522.45 million from RM556.71 million a year ago.

No dividend was declared for the quarter.

For the 12 months ended Dec 31, 2024, the group's net profit dropped 3.48% to RM50.99 million, from RM52.83 million in the same period of 2023, while revenue eased 0.24% to RM2.27 billion from RM2.28 billion.

The group had in November 2024 changed its financial year end to June 30, from Dec 31 to be coterminous with that of the holding company, YTL Power International Bhd (KL:YTLPOWR). This means that the group’s current financial period will comprise 18 months from Jan 1, 2024 to June 30, 2025.

On its prospects, Ranhill Utilities said it expects continued growth in water consumption demand, driven by catalytic projects like the Johor-Singapore Special Economic Zone and Special Financial Zone, along with significant growth in data centre development.

It said these developments are expected to generate multiplier effects for the local economy, attracting both domestic and foreign investments.

Ranhill Utilities shares closed two sen or 1.5% lower at RM1.33 on Tuesday, bringing the group a market capitalisation of RM1.73 billion.

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