Ranhill Utilities Berhad releasd its financial results for the second quarter ended 30 June 2024 reporting a revenue of RM561.4 million contributing to a year-to-date revenue of RM1.1 billion in 1HFY24.
This represents a decrease from RM593.7 million and RM1,113.7 million recorded in the corresponding quarter and year-to-date period in 2023. The profit attributable to ordinary equity holders of the parent for Q2FY24 stood at RM6.5 million, with a cumulative profit of RM16.9 million for 1HFY24. This is a decline as compared to RM12.1 million for Q2FY23 and RM23.2 million for 1HFY23.
The decrease in revenue for the quarter it said was primarily driven by lower revenue recognition on the Bidor Solar project amounting to RM53.2 million and reduced revenue by Ranhill Worley Sdn Bhd of RM18.9 million. However, it noted this was partially offset by a revenue increase of RM43.9 million recorded by Ranhill SAJ Sdn Bhd. The decrease in PAT of the quarter is mainly due to an RM8.0 million reversal of profits previously recognised in connection with Ranhill Worley's detailed design engineering services for the P-82 floating production, storage, and offloading vessel for a Brazilian oil & gas producer.
Segmentally, the Water segment contributed the most to the Group's revenue, recording a revenue of RM664.9 million in 1HFY24, an increase of 12.4% compared to RM591.3 million in 1HFY23, driven by higher recognition of water revenue contributed by RanhillSAJ. However, PAT for this segment decreased slightly to RM68.1 million from RM69.7 million in the preceding corresponding period, due to higher amortization on services concession assets by RanhillSAJ. The Power segment posted a revenue of RM126.3 million in 1HFY24, a decrease of 4.8% from RM132.6 million in the preceding corresponding period, mainly due to lower recognition of capacity payments and derecognition of revenue related to failure dispatch incidents by Ranhill Sabah Energy II. Consequently, PAT for this segment fell to RM27.0 million from RM30.6 million in the preceding corresponding period.
The Consultancy and Services segment saw a decline in revenue of 14.7% to RM332.6 million from RM389.8 million in 1HFY23, largely due to lower revenue from Ranhill Bersekutu Sdn Bhd ("RBSB") as the construction phase of the EPCC project in Bidor concluded. This segment's PAT also decreased to RM17.4 million from RM22.3 million, impacted by estimated losses on project P82, which were partially offset by foreign exchange gains at Ranhill Worley.
Looking ahead, the Group said it remains optimistic about the prospects in its Water, Power, and Consultancy and Services segments. In the Water segment, local demand is expected to grow in Johor, spurred by various economic projects and a recent tariff hike. Internationally, Ranhill is exploring expansion opportunities in China and Thailand, and has resubmitted feasibility studies for a significant water project in Indonesia.
Despite the challenges faced in 1HFY24, the group said it remains focused on delivering sustainable growth and creating value for its shareholders. The Group's diversified portfolio and strategic initiatives across its core segments are expected to drive future growth.