KUALA LUMPUR (May 20): Ranhill Utilities Bhd’s first quarter net profit fell 14.87% on-year to RM18.19 million from RM21.37 million, dragged by lower revenue, which offset lower taxes and finance costs.

Earnings per share for the quarter ended March 31, 2020 slipped to 1.7 sen from 2 sen apiece a year earlier, Ranhill said in its results filing.

Revenue fell 9.08% to RM368.28 million from RM405.05 million in the year-ago first quarter, caused by lower water consumption volume and lower contribution from developers in Ranhill SAJ Sdn Bhd.

The fall in revenue was also due to lower engineering construction revenue and reduction in electricity tariff incurred amid repayment of a power project loan.

On prospects, Ranhill sees a challenging year ahead due to the COVID-19 pandemic and the Movement Control Order countermeasures.

“The management will implement the necessary austerity measures without jeopardising operations and services,” it said.

On the electricity tariff hike negotiations, Ranhill expects it to now take longer than expected “given the outbreak and the recent change in the country’s administration”.

Initiatives to explore the opportunity in expanding water supply operations to other States in Malaysia are still actively sought, it added.

Ranhill said it is optimistic of securing more industrial water and wastewater treatment projects with an additional treatment capacity not only from Amata Industrial park but other industrial parks in Thailand.

“As for the power division, we are proposing an extension of the existing concession at our Teluk Salut Power Plant beyond its existing concession end-2029. We intend to commence negotiation with the Government for the PPA extension in 2020,” the group said.

Additionally, the power division is also in discussion with other Ranhill subsidiaries to install ground-mounted solar PV or rooftop solutions to be installed in the latter’s respective facilities under net energy metering (NEM) and solar power purchase agreement structure, it added.

Shares of Ranhill, previously known as Ranhill Holdings Bhd, rose 3.5 sen or 3.55% to close at RM1.02 today, valuing the group at RM1.09 billion.