KUALA LUMPUR (May 22): PBA Holdings Bhd (KL:PBA), the water utility operator for Penang, expects stronger revenue growth from the third quarter of this year, supported by higher water tariffs and rising industrial demand amid the state’s rapid industrial expansion.
The positive outlook comes after the Penang state government confirmed that domestic and commercial water tariffs will be revised upward, effective July 1, 2026. Under the revision, the average tariff will increase by 20 sen per cubic metre, raising the average rate to RM2.75 from RM2.55 previously.
For the first quarter ended March 31, 2026 (1QFY2026), PBA’s net profit more than doubled to RM39.73 million from RM19.54 million a year earlier, according to the group’s filing with Bursa Malaysia on Friday. Quarterly revenue rose 17% year-on-year to RM145.63 million from RM124.28 million previously.
The group attributed the stronger performance mainly to a higher value of pipe reticulation assets surrendered by developers at no cost to its wholly owned subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd, upon completion of development projects.
PBA’s sole reportable business segment is the abstraction of raw water, treatment and distribution of treated water to consumers in Penang, as well as other water-related activities.
The company said it is still in talks on a long-term treated water supply project between Perak and Penang involving Perbadanan Kemajuan Negeri Perak and Gamuda Bhd (KL:GAMUDA). The agreement was initially targeted for completion within six months from November 2025, but negotiations are ongoing. PBA has requested an extension until Nov 4, 2026, although the current extension is only valid until July 3, 2026.
PBA did not declare any dividend during the quarter under review.
As at end-March 2026, PBA had cash and cash equivalents of RM543.34 million, compared with total loans and borrowings of RM317.16 million.
Shares of PBA closed three sen or 1.59% lower at RM1.86 on Friday, giving the group a market capitalisation of RM616.16 million. The stock has slipped marginally by 0.53% year to date.