Malakoff Slips Into Loss as TBE Outage and Shuaibah Decline Hit Earnings

Malakoff Corporation Berhad has reported a steep earnings decline for 3QFY25, slipping into a core net loss of RM38.6 million compared with a RM86.9 million profit a year earlier. The performance fell far short of expectations, with 9MFY25 core net profit plunging 81.7 percent to RM40.1 million, representing only 20 percent of full-year projections.

The shortfall stemmed mainly from capacity income losses at Tanjung Bin Energy (TBE) following an extended unscheduled outage caused by a steam turbine crossover pipe leakage. The situation worsened after a fire in the flue gas desulphurisation system triggered a second outage. Management estimates total capacity income losses at roughly RM100 million, although insurance claims could recover about RM60 million once the deductible period ends.

Malakoff Slips

Associate and joint-venture contributions also weakened sharply, led by the decommissioning of the Shuaibah Water and Electricity Company plant in May, reducing Shuaibah’s quarterly contribution to RM5 million. Lower earnings from Prai Power Plant after the expiry of its PPA extension added further pressure.

Malakoff expects 4QFY25 results to reflect an even wider loss, with recovery hinging on potential PPA extensions and tariff adjustments for solid waste operations. Meaningful contributions from new waste-to-energy and solar projects are only expected from 2028.

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