KUALA LUMPUR (May 15): PBA Holdings Bhd (KL:PBA), Penang’s water supply operator, posted a 36.1% year-on-year jump in net profit for the first quarter, underpinned by the water tariff increase that took effect in February last year.

Net profit for the quarter ended March 31, 2025 (1QFY2025) rose to RM19.54 million from RM14.35 million in the same period last year, according to the group's bourse filing on Thursday.

Revenue increased 11.8% to RM124.28 million versus RM111.17 million previously, which PBA attributed primarily to a hike in water tariffs for domestic users from Feb 1, 2024. 
 
No dividend was declared for the quarter.

Last February, domestic users in Penang saw their water tariffs double — with those using 20-35 cubic metres a month being charged RM1.10, up from 46 sen previously, and those using more than 35 cubic metres having to pay RM2 per cubic metre, compared with 68 sen previously. Accounts that use zero to 20 cubic metres a month saw their rates raised to 62 sen per cubic metre from 32 sen. 

Penang's domestic water rates were last adjusted in 2015. Since then, the cost of producing and supplying treated water to consumers in Penang has increased byt 30%, according to PBA.

For 1QFY2025, PBA recognised a full quarter of higher water tariffs, compared with just two months in 1QFY2024.

Looking forward, PBA said revenue is expected to increase in line with Penang’s rapid industrialisation, which will result in an increase in the sale of treated water.

Shares in PBA ended three sen or 1.4% lower at RM2.12, valuing the group at RM702.29 million.