Malakoff Q2 net profit nearly halves on Tanjung Bin equipment failures

Malakoff Corp Bhd reported a near halving of its net profit to RM31.7 million in the second quarter, primarily due to reduced output from its Tanjung Bin power plant in Johor. The plant's performance was impacted by equipment failures, including a steam turbine generator rotor failure and a hydrogen cooler leak. Revenue for the quarter declined 5.4% to RM1.91 billion, a drop from RM2.02 billion a year earlier.

For the first half of the financial year, the net profit fell 46.5% to RM51.8 million, while revenue decreased 19% to RM3.28 billion. The coal handling system at Tanjung Bin was fully restored to its design capacity, and repairs were progressing as planned, with completion expected by mid-August. Malakoff's CEO, Syahrunizam Samsudin, stated that the company was well-positioned to deliver stronger results in the second half following the Tanjung Bin recovery works.

The gas-fired plants in Lumut and Prai were performing strongly, demonstrating the resilience of the diversified generation portfolio. Malakoff also secured new power purchase agreements for its gas plants, raising RM450 million through a green sukuk, and signed a 21-year power purchase agreement for its waste-to-energy facility in Sungai Udang.

The subsidiary Alam Flora plans to deploy electric vehicles and equipment by year-end to reduce carbon emissions.