Malakoff: Setback at Tanjung Bin

Malakoff posted a core LATAMI of RM29.0 million in 4QFY25, swinging into losses from a profit of RM28.2 million in 3QFY25 and RM48.7 million in 4QFY24. The decline was primarily due to the fire incident affecting the Flue Gas Desulphurisation (FGD) system at Tanjung Bin Energy (TBE).

“For FY25, core PATAMI of RM96m exceeded our estimate by 32.1%, but fell short of consensus by 18.8%. Management confirmed that TBE has resumed full commercial operations following successful chimney flue-can restoration works and the implementation of a temporary FGD bypass system on 28 January 2026, later than the earlier guidance of end-December 2025,” says Public Investment Bank.

Malakoff

Separately, the collapse of the coal unloader at the Tanjung Bin Complex jetty on 16 December 2025 has resulted in damage to all three conveyor belts, posing potential coal handling and inventory risks for both Tanjung Bin Power (TBP) and TBE.

While mitigation measures are ongoing, execution and restoration timelines remain key monitoring points.

“We maintain our Underperform call with an unchanged TP of RM0.78, as operational uncertainties and execution risks surrounding asset restoration continue to cloud near-term earnings visibility.”

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