KUALA LUMPUR (Nov 27): Malakoff Corp Bhd (KL:MALAKOF) said a fire at the Tanjung Bin Energy plant in October is likely to drag on its performance in the financial year 2025. This after turbine issues at the plant saw it post a 67.5% drop in net profit for the third quarter.

Net profit for the third quarter ended Sept 30, 2025 (3QFY2025) fell to RM28.21 million from RM86.88 million a year earlier, due to lower energy payments following a steam turbine pipe leakage at the Tanjung Bin Energy plant. Lower investment returns and the absence of an insurance payout for turbine blade failure recognised last year reduced profits, partly offset by higher coal prices.

In its bourse filing, Malakoff said insurance is expected to cover energy payment losses from the Oct 2 fire involving part of the plant’s chimney and its Flue Gas Desulfurization system at its Tanjung Bin Energy plant, with operations set to resume by end-December.

Losses to be covered by insurance claims, however, are still being assessed. Malakoff said the incident occurred during a scheduled outage and did not affect grid stability.

Lower energy payments from Tanjung Bin Energy, Tanjung Bin Power and Segari Energy Ventures, partly due to reduced electricity output (despatch factor) and lower coal prices, caused revenue to fall 23.8% to RM1.69 billion from RM2.22 billion a year earlier.

No dividend was declared for the quarter.

For the nine months ended Sept 30, 2025, net profit nearly halved to RM125.03 million from RM242.66 million in the same period a year earlier, as revenue fell 15.07% to RM5.74 billion from RM6.81 billion.

Shares in Malakoff ended one sen or 1.1% lower at 89.5 sen on Thursday, valuing the group at RM4.42 billion.