Rainhill Utilities Berhad’s (Rainhill) recorded about 10% increase in net profit for the third quarter ended Sept 30, 2023 (Q3FY23) to RM10.2 million in Q3FY23 from RM9.3 million in the previous year on on higher earnings in all of its business segments.
In its financial results announcement today (Nov 14), it said that the company also delivered strong revenue growth of 40.4% to RM609.4 million from RM434 million in Q3FY22.
“The revenue increase for the quarter was seen throughout all segments (environment, engineering services and energy) driven by higher water revenue due to a non-domestic tariff hike and improved performance from various subsidiaries. The profit increase can be attributed to the Engineering segment,” it said in a statement.
Rainhill said Environment division remained they key revenue contributor, with a revenue of RM966.7 million, or 56.1% of total year-to-date revenue, which is a 9.7% increase from RM881. million in the preceding year.
“This achievement was primarily due to higher water revenue recognition driven by the tariff hike implemented by RanhillSAJ.
“However, it reported year-to-date profit after tax (PAT) of RM81.2 million, a slight drop of 6.9% from RM87.2 million in the previous year, mainly driven by increased utilities costs, heightened expenses and an uptick in chemical usage,” it said.
Notable projects in the segment is the establishment of consortium to spearhead the ‘source-to-tap’ project in Indonesia, which has achieved National Strategic Project status as well as bids for two Build-Operate-Transfer Concessions to upgrade and built water treatment plants through AnuRAK.
Meanwhile, Engineering Services segment contributed a year-to-date revenue of RM415 million, a remarkable increase of 104.4% from RM203.0 million in the previous year.
“This growth can be attributed to higher contributions from Ranhill Worley Sdn Bhd (RWSB) as a result of higher chargeable hours from existing projects.
“The higher growth in revenue translated to the segment reporting a year-to-date PAT of RM43.5 million, an increase of 65.8% or RM17.3 million,” it said.
Within the Engineering Services division, RWSB has secured major global projects, showcasing its prowess in Front End Engineering Design and Detailed Design Engineering (DDE) with notable projects such as for Petrobras in Brazil, two compression complexes associated with the Qatar North Field and anticipated to be the largest offshore CCS project globally, the Kasawari Carbon Capture and Storage (CCS) project in Sarawak.
Rainhill said the energy segment reported a year-to-date revenue of RM341.5 million, marking an increase of 69.2% or RM139.7 million from the previous year’s RM201.8 million.
“This growth was mainly fuelled by the recognition of the construction progress of Ranhill Solar I in Bidor.
“Ranhill is poised for significant advancements in both the Environment and Energy sectors, underscoring its commitment to sustainable development and strategic expansion,” it said.
Among the ongoing projects are the proposal for an extension to the Power Purchase Agreement (PPA) for the 190MW Teluk Salut Power Plant and 100 MW CCGT project in Kimanis, Sabah, by the Ranhill-SEC consortium.
“In renewable energy, Ranhill is making significant strides with its LSS4@Mentari, a 50MWac large-scale solar project. The project has a 98.9% completion progress as of 31 October 2023 and is on track to achieve its commercial operation date of 31 December 2023.
“Looking ahead, Ranhill is steadfast in pursuing its targets of attaining 3,000 MLD of water, wastewater, and reclaimed water treatment capacity by 2027. The energy target includes achieving 1,000 MW of generation capacity,” the company said.
