KUALA LUMPUR (Feb 25): Malakoff Corporation Bhd (KL:MALAKOF) posted its first quarterly loss in two years for the fourth quarter ended Dec 31, 2025 (4QFY2025), as lower capacity payments from its coal-fired plants dragged earnings lower. 

The power generation and environmental solutions group recorded a net loss of RM28.97 million in 4QFY2025, compared to a net profit of RM26.03 million in the corresponding quarter last year.

Revenue for the quarter declined 32% to RM1.47 billion from RM2.16 billion in 4QFY2024, a bourse filing showed.

The group attributed the weaker performance mainly to lower energy and capacity payments from Tanjung Bin Energy Sdn Bhd following a fire incident at its flue gas desulphurisation facility and chimney tunnel as well as lower energy and capacity payments at Tanjung Bin Power Sdn Bhd due to a decline in applicable coal prices and a steam turbine generator rotor failure.

Earnings per share for the quarter came in at a loss of 0.59 sen compared to positive earnings of 0.53 sen in 4QFY2024 and 1.43 sen in 3QFY2025. No dividend was declared for the quarter.

For the financial year ended Dec 31, 2025 (FY2025), net profit attributable to owners fell 64.25% to RM96.06 million from RM268.69 million in FY2024 while revenue decreased 19.62% to RM7.21 billion from RM8.97 billion.

The decline was mainly due to lower energy and capacity payments at both Tanjung Bin plants following equipment issues and the fire incident, partially offset by reversal of coal inventory provisions and recognition of insurance claims.

On a year-to-date basis, earnings per share dropped to 0.84 sen from 4.44 sen previously.

Power generation remained the largest contributor, generating RM6.12 billion in external revenue in FY2025 compared with RM7.92 billion previously while the waste management and environmental services segment recorded RM886.72 million in revenue, up from RM855.97 million.

Looking ahead, Malakoff expects improved performance in FY2026, supported by the operational extension of certain gas power plants and phased recovery of coal unloading facilities at the Tanjung Bin Complex jetty.

Separately, Malakoff has named former PETRONAS president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin, 66, as its new independent non-executive chairman, effective March 1.

He is set to succeed Tan Sri Che Khalib Mohamad Noh, 61, who is resigning to “pursue other interest”.

Wan Zulkiflee currently chairs the boards of Nestlé (Malaysia) Bhd (KL:NESTLE), Gas Malaysia Bhd (KL:GASMSIA) and DRB-Hicom Bhd (KL:DRBHCOM).

Shares of Malakoff settled half a sen or 0.6% lower at 83 sen, valuing the group at RM4.13 billion. The stock is up 2.47% this year.