Ranhill Utilities Berhad (Ranhill) showed impressive growth in both revenue and profit with a revenue of RM593.7 million, marking a substantial increase of 29.5% from RM458.4 million recorded in the preceding year’s quarter (“Q2FY22”).
For Q2FY23, profit attributable to the ordinary equity holder of the parent (PATMI) for the quarter displayed a significant increase of 72.9% to RM12.1 million as compared to RM7.0 million in Q2FY22.
The exceptional performance was attributed to various factors, including higher recognition of water revenue by Ranhill SAJ arising from a tariff hike and increased revenue from Ranhill Worley Sdn Bhd (RWSB).
Ranhill posted six months year-to-date revenue of RM1,113.7 million representing an overall increase of 30.8% from the prior year and a PATMI of RM23.2 million, a significant increase of 61.2% year-on-year. Most notable was the growth in its Energy segment whereby a turnaround from previous slight losses to significant profits of RM8.6 million was achieved, the company said in a statement today (Aug 15).
In a segmental basis, the Environment division remained the key revenue contributor, with a revenue of RM640.2 million, or 57.5% of total year-to-date revenue. The Environment segment demonstrated substantial growth, with an increase of 10.6% from RM579.1 million in the preceding year.
This achievement was primarily due to higher water revenue recognition driven by the tariff hike implemented by Ranhill SAJ. The segment also reported year-to-date profit after tax (PAT) of RM58.4 million, a jump of 33.3% from RM43.8 million in the previous year, attributed to higher profits by Ranhill SAJ and increased share of profit from Ranhill Water (Hong Kong) Ltd (RWHK).
The Engineering Services segment recognised revenue for significant work completed during the period, contributing to a year-to-date revenue of RM263.8 million, a remarkable increase of 97.8% from RM133.4 million in the previous year.
This growth can be attributed to higher contributions from RWSB as a result of chargeable hours from existing projects. The segment also reported a year-to-date PAT of RM28.4 million, an increase of RM8.6 million, primarily contributed by RWSB.
The Energy segment reported a year-to-date revenue of RM209.7 million, marking an increase of 50.5% or RM70.4 million from the previous year’s RM139.3 million. This growth was mainly driven by the recognition of construction progress of large-scale solar projects (LSS4 projects).
The segment achieved an impressive turnaround from the slight losses of RM0.5 million incurred in the preceding year to a PAT of RM8.6 million, a significant increase of RM9.1 million due to lower maintenance costs associated with its Steam Turbine 1C and diverter damper.
The combined contributions from all of the Company’s business segments underscore Ranhill’s multi-faceted approach to achieving higher profitability across its diverse portfolio.
Ranhill is actively pursuing expansion opportunities in both its Environment and Energy segments. The Company is exploring initiatives to expand its water supply operations to other states in Malaysia through the “Asset-Light” model.
In the international front, RWHK Ltd operates industrial wastewater treatment plants in China and Thailand, contributing to the total treatment design capacity. Moreover, the Group, along with strategic partners, is progressing with the “Source-to-Tap” project in Indonesia, which recently gained National Strategic Project status.
Ranhill’s energy division is engaged in several significant projects, including an extension proposal for the power purchase agreement in regards to its Teluk Salut Power Plant and the successful bid for a 100 MW CCGT project in Kimanis, Sabah. The Group is also exploring solar farm development in collaboration with Ranhill SAJ’s Johor water operations to ensure stable electricity costs.
The Group remains committed to its ambitious targets, including attaining 3,000 MLD of water, wastewater, and reclaimed water treatment capacity by 2025. Apart from that, the Group will also continue to pursue its energy target of having 1,000 MW of generation capacity and 300 MW of renewable capacity.
As Ranhill continues to navigate the global transition towards cleaner energy sources and sustainable solutions, it maintains a focus on contributing to a greener future.
Reflecting on the Group’s overall strength of its year-to-date financial results and commitment to delivering value to its shareholders, the Group declared a first interim dividend for the financial year ending 31 December 2023 of 1.5 sen per share amounting to RM19.3 million on 29 May 2023, which was subsequently paid on 30 June 2023.
