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Ranhill’s 2Q profit up 21% on stronger water segment contribution

TheEdge Wed, Aug 14, 2019 10:43pm - 6 months ago

KUALA LUMPUR (Aug 14): Ranhill Holdings Bhd posted a 21% jump in its second quarter net profit to RM18.67 million from RM15.43 million a year ago, thanks to higher contribution from its water segment.

Revenue climbed 12% year-on-year to RM423.99 million from RM379.47 million, as its environment — which saw higher water consumption volume at Ranhill SAJ Sdn Bhd and higher contribution from Ranhill Water Technologies Sdn Bhd — and power segments saw higher contributions, the group’s stock exchange filing today showed.

For the first half of FY19 (1HFY19), its net profit rose 19% y-o-y to RM40.04 million from RM33.57 million, as revenue climbed 12% to RM829.04 million from RM739.76 million.

On prospects, the group said it is targeting to own and operate a gross 1,000 megawatt (MW) of power plants that deliver clean energy, and 3,000 million litres a day (MLD) of water and wastewater treatment capacity. Of the latter, it wants 400 MLD to be from the international segment by 2022.

“Growth in the local environment segment is expected to be supported by the increasing demand in water for the State of Johor, especially with the development of new housing and industrial areas. Domestically, our capacity is expected to grow 3% to 4% annually,” the group said.

Meanwhile, Ranhill said it is pursuing the development of new gas power plants in the Asean region, as well as diversifying into the renewable energy business such as geothermal and large-scale solar in tandem with the aspirations of the Malaysian Government to increase its generation capacity from renewable energy sources.

It also plans to further strengthen its operational presence in Thailand, where it currently operates 10 water and wastewater treatment plants and reclamation plant with industrial park developers and other private enterprises.

The counter closed 0.76% or a sen higher at RM1.33 today, valuing the company at RM1.42 billion. In the past year, the stock has jumped 126.5%.

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