Malakoff Corp nearly triples earnings in Q4

PETALING JAYA: Malakoff Corp Bhd saw its net profit nearly triple to RM85.48 million for the fourth quarter ended Dec 31, 2018 (Q4), from RM29.7 million in the previous corresponding quarter.

This was due to improved contribution from Tanjung Bin Energy (TBE) coal plant, lower depreciation of C-inspection costs, operation and maintenance costs, net finance costs coupled with higher contributions from associates investments, the group said in Bursa Malaysia filing today.

Revenue for the quarter increased 5.2% to RM1.89 billion, compared with RM1.79 billion in the same quarter a year ago primarily due to higher energy payment recorded from Tanjung Bin Power and TBE coal plants on the back of higher applicable coal price.

For the full year, its net profit declined 7.26% to RM274.43 million, from RM295.93 million a year ago, while revenue slightly up by 3.1% to RM7.35 billion, from RM7.13 billion previously.

On its prospects, Malakoff said it is currently exploring opportunities in the renewable energy sector particularly on hydro, biogas and waste-to-energy, in line with the government’s greater push for renewable energy.

The group said it will also be participating in the government’s open tender for the third round of the 500MW large scale solar (LSS3) projects, which was announced recently.

Based on the foregoing, the group expects performance to remain satisfactory for the financial year ending Dec 31, 2019, it added.

As at 2.35pm, the group’s share price up 1.71% or 1.5 sen to 89 sen with 4.62 million shares changing hands.

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Allianz earnings up 15.3% to RM100m in fourth quarter

PETALING JAYA: Allianz Malaysia Bhd’s earnings increased by 15.3% in the fourth quarter ended Dec 31, 2018 (Q4) to RM100.04 million, from RM86.78 million in the previous corresponding quarter mainly due to higher underwriting profit from motor business arising from lower claims and management expenses.

For the quarter under review, the general insurance segment recorded a profit before tax of RM78 million, an increase of 15.7% as compared to the preceding year quarter.

Meanwhile, the life insurance segment recorded a profit before tax of RM50.3 million, a decrease of 15.5% due mainly to higher group claims.

Allianz reported a 7.63% increase in revenue to RM1.3 billion in Q4 from RM1.21 billion, driven by higher gross earned premiums and investment income.

For the full year, its net profit grew 30.9% to RM377.02 million from RM287.96 million a year ago, while revenue was up 7.9% to RM5.18 billion from RM4.8 billion previously.

The general insurance industry reported a marginal growth of 1.5% in gross written premium for the year ended Dec 31, 2018.

Allianz said the group anticipates similar trend in the medium-term given the economic uncertainty and subdued consumer sentiments.

However, it said the general insurance segment will continue to offer innovative products and services in anticipation of a fully liberalised insurance market while further expanding its multi-distribution model to maintain market leadership.

For the life insurance segment, Allianz will continue to leverage on the strength of its multi-distribution channels and increase productivity across distribution channels to generate growth.

The group will also continue to focus on optimising the performance of its insurance businesses and expect to maintain satisfactory results in 2019, it added.

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Property, farming drive KLK’s Q1 earnings

PETALING JAYA: Kuala Lumpur Kepong Bhd’s (KLK) net profit for the first quarter ended Dec 31, 2018 rose 6.61% to RM250.92 million from RM235.36 million a year ago driven by property development and investment holding segments.

In a filing with Bursa Malaysia, KLK said its property development segment achieved a much higher profit of RM11.1 million during the quarter compared with RM1.7 million a year ago supported by the increase in revenue to RM39.8 million compared with RM17.9 million a year ago.

Under the investment holding/others segment, the farming business recorded a higher profit of RM56.5 million compared with RM31.9 million a year ago due to higher crop production as a result of better yields and larger cropped area.

However, the plantation segment’s profit fell sharply by 58% to RM127.5 million from RM303.6 million a year ago despite the 7.9% improvement in fresh fruit bunches (FFB) production to 1,105,465 MT, due to the drop in crude palm oil (CPO) and palm kernel (PK) selling prices realised.

The manufacturing segment also recorded lower profit of RM98 million, reflecting a 28.8% drop from RM137.7 million a year ago while revenue fell 12.4% to RM2.20 billion from RM2.52 billion a year ago as a result of lower selling prices.

“Decline in profits from China and Europe operations had more than offset the improvement in profits from Malaysia operations,” KLK said.

The oleochemical division’s profit was lower at RM94.5 million compared with RM137.1 million a year ago but profit from the other manufacturing units had increased to RM3.5 million compared with RM641,000 a year ago.

KLK said the group’s profit had accounted for foreign currency exchange gain of RM38 million which arose from the translation of inter-company loans denominated in foreign currencies and a surplus of RM22.5 million arising from government acquisition of plantation land.

Revenue for the quarter fell 21.06% to RM4.09 billion from RM5.18 billion a year ago.

Moving forward, the group expects a reasonably satisfactory profit for the financial year ending Sept 30, 2019 (FY19).

“Prevailing CPO prices had since recovered from the low levels in the preceding quarter. Should such recovery be sustained, we are optimistic that the prospects for plantation profit for FY19 will be satisfactory,” it said.

It expects the oleochemical division to sustain its performance through increase in capacity utilisation and improvement in margins.

KLK’s share price fell 0.24% to close at RM24.74 today with 317,700 shares traded.