Ranhill net profit up 78% in Q3

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PETALING JAYA: Ranhill Holdings Bhd’s net profit for the third quarter ended Sept 30, 2017 rose 78.16% to RM25.20 million from RM14.14 million a year ago due to savings of RM3 million from a rationalisation and relocation exercise.

In a filing with Bursa Malaysia today, Ranhill said a one-off RM5.9 million recognition of sukuk redemption premium in preceding year quarter also contributed to the higher earnings.

Revenue for the quarter rose 3.43% to RM383.55 million from RM370.84 million a year ago mainly due to the increase in revenue from the environment segment as a result of higher volume of water consumption, in line with the increase in customer base arising from new housing developments.

For the nine months ended Sept 30, 2017, net profit fell 5.80% to RM55.40 million from RM58.82 million a year ago while revenue rose 2.88% to RM1.10 billion from RM1.07 billion a year ago.

The company declared a first interim single tier dividend of 1 sen per share for the financial year ending Dec 31, 2017, payable on Dec 13, 2017.

Commenting on its outlook, the company said it expects gradual growth in electricity demand from the company’s current 2 X 190MW plants.

“The negotiation on the 300MW combined cycle power plant in Sandakan is progressing. The power sector has also commenced negotiation for opportunities in Thailand, Myanmar and Australia,” it said.

It expects growth in the local environment to be supported by the increasing demand in water for Johor, especially with new housing and industrial developments.

In addition, the undertaking of the joint billing of water supply and sewerage services in Johor as well as the potential integration of water supply and sewerage services will enhance the company’s revenue and profit.

The salient points of the joint billing agreement have been agreed and the agreement is expected to be executed by end of the year.

“Our non-revenue water (NRW) division spearheaded by Ranhill Water Services (RWS) has secured Johor Phase 5 NRW jobs which are targeted to lower Johor’s NRW to approximately 22% by December 2020. RWS is also actively involved in negotiations of NRW works in other states in Malaysia,” it added.

Internationally, Ranhill’s joint venture with SIIC Environment Holdings Ltd is now poised to commence exploring new opportunities for industrial wastewater concession contracts and other potential water related works in China and other Southeast Asia countries under the One Belt One Road initiative.

Ranhill’s share price fell 3.97% or 3 sen to close at 72.5 sen today with a total of 1.32 million shares traded, giving it a market capitalisation of RM644.03 million.


Read the original story on: TheSunDaily.My