Malakoff Corporation Berhad Reports Significant Profit Decline in Q1 2025

KUALA LUMPUR (May 27, 2025) — Malakoff Corporation Berhad (KL:MALAKOF), a leading Malaysian company in the extraction and processing of natural resources, has reported a substantial 45.4% year-on-year decline in net profit for the first quarter of 2025. The company’s net profit for the three months ending March 31, 2025, fell to RM33.99 million from RM62.2 million in the same period the previous year. This downturn is primarily attributed to lower energy payments, as detailed in the company’s recent bourse filing.

Quarterly revenue also saw a decrease, dropping 11.1% to RM2.03 billion from RM2.28 billion in the first quarter of 2024. In response to these financial results, Malakoff has decided not to declare any dividends for the quarter.

The decline in earnings is largely due to reduced energy payments from Tanjung Bin Power Sdn Bhd and Tanjung Bin Energy Sdn Bhd, following a decrease in the applicable coal price. Additionally, lower energy payments from Segari Energy Ventures Sdn Bhd were noted, attributed to a lower dispatch factor, which reflects the share of generation capacity utilized.

Malakoff’s managing director and group CEO, Anwar Syahrin Abdul Ajib, highlighted the broader context of these financial results, pointing to a softening in global coal prices. This trend is driven by reduced demand from major markets such as China and India. Anwar emphasized that while this may lead to moderated energy payments from Malakoff’s coal-based assets, it aligns with the global energy transition. He assured stakeholders that the company remains focused on enhancing operational efficiency and plant reliability amidst these market changes.

As Malakoff navigates these challenges, the company continues to monitor the current price trends closely. The strategic focus remains on adapting to the evolving energy landscape while maintaining a commitment to operational excellence.

In related market activity, notable insider moves have been observed across several Bursa Malaysia-listed companies. For instance, the Employees Provident Fund (EPF) has reduced its stake in Kerjaya Prospek Group Bhd, while Lembaga Tabung Haji has decreased its holding in Gas Malaysia Bhd. These movements reflect ongoing adjustments in shareholder strategies within the Malaysian market.

Malakoff’s financial performance in Q1 2025 underscores the impact of global market dynamics on energy companies. As the industry continues to evolve, Malakoff’s strategic initiatives will be crucial in navigating the challenges and opportunities ahead.