KUALA LUMPUR (Aug 17): Malakoff Corp Bhd’s (KL:MALAKOF) net profit for the second quarter fell by half, weighed down by lower contributions from its power plants in Johor following equipment failures, partly offset by insurance claims and higher contributions from associates.

Net profit for the three months ended June 30, 2026 (2QFY2026) stood at RM31.7 million, compared with RM62.8 million a year earlier, according to the group’s bourse filing on Monday.

Quarterly revenue fell more than 5% year-on-year to RM1.91 billion from RM2.02 billion, mainly due to lower capacity payments from Tanjung Bin Power Sdn Bhd (TBP).

TBP, a 90%-owned subsidiary of Malakoff, owns and operates a 2,100MW coal-fired power plant in Pontian, Johor. The plant was affected by a steam turbine generator rotor failure and a generator hydrogen cooler leak during the quarter.

No dividend was declared for the quarter.

The group’s first-half net profit fell more than 46% to RM51.8 million from RM96.8 million a year earlier while revenue declined nearly 19% to RM3.28 billion from RM4.05 billion.

Looking ahead, Malakoff said the coal handling system at its Tanjung Bin Complex has been fully restored to its design capacity of up to 5,000 tonnes per hour.

Repairs to TBP’s equipment are also progressing as planned, with reinstallation expected to be completed by mid-August.

The group said it remains cautiously optimistic about its performance for the remainder of the financial year.

Shares of Malakoff rose three sen, or 3.6%, to end at 86.5 sen on Monday, giving the group a market capitalisation of RM4.33 billion.