Green & Smart Holding records 181% increase in net profit
Malaysia-headquarted renewable energy group Green & Smart Holding saw a 181% increase in net profit for the year ended 30 September 2016, helped by the group maintaining and increasing its biogas contracts.
Net profit increased 181% to RM9.9m (€2.08m) last year, compared to RM3.5m the year before.
Revenue increased 260% to RM67.38m, compared to RM18.70m the year before. Gross profit increased 236% to RM17.06m, compared to RM5.07mthe previous year. Operating profit increased 169% year-on-year to RM10.13m.
The results come as the company announced that it completed first fully-owned biogas power plant at Kahang, which is transmitting power to the national grid and generating revenue.
Green & Smart Holding also said it had “significantly progressed” the Malpom project, with the completion, post period, of construction, installation of the biogas system and commencement of commissioning
Post period, advanced the Minyak and Liziz projects, including expanding the palm oil mill effluent capture facilities, with completion expected in the first half of calendar year 2017.
Saravanan Rasaratnam, group managing director of Green & Smart, said: “It has been a transformational year, one in which Green & Smart moved from being an EPCC contractor to an independent power producer, producing energy by cleaning up the environmentally-damaging effluent produced by palm oil mills.
“In the past 15 months, the Group has successfully built a total seven biogas plants and has commenced generating revenues from its wholly-owned Kahang plant that has been connected to the grid.
“The group has the largest market share of contracts awarded to a biogas-to-power company generating power from biogas captured through the treatment of palm oil mill effluent in Malaysia.
“However, the maintenance of market dominance is very much dependent on the availability of adequate funding and financing and accordingly the company is focused on the collection of outstanding funds due from completed EPCC contracts and securing long-term financing facilities.
“We look forward to providing further updates as more EPCC contracts are completed and the group’s fully-owned biogas power plants commence the provision of power to the grid at full tariff rate. As a result, the board is confident of delivering sustained long-term growth and shareholder value.”