CEO Morning Brief

PBA Secures Three-year Renewal of Penang Water Licence

Publish date: Fri, 09 Jun 2023, 08:43 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 8): The government has renewed PBA Holdings Bhd’s water supply licence in Penang for another three years.

In a bourse filing on Thursday (June 8), PBA said Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad approved its application to renew its wholly-owned subsidiary Perbadanan Bekalan Air Pulau Pinang Sdn Bhd’s individual licence (Facilities and services) pursuant to the Water Services Industry Act 2006 (WSIA).

“The licence shall be effective from Jan 1, 2023, to Dec 31, 2026, unless renewed in accordance with Section 17 of the WSIA and Regulation 7 of the Water Services Industry (Licensing) Regulations 2007," the group said.

For the first quarter ended March 31, 2023 (1QFY2023), PBA’s net profit fell 12.71% to RM12.97 million from RM14.86 million a year earlier, dragged by higher energy expenses.

This was despite a 22.64% rise in revenue to RM97.39 million versus RM79.42 million previously, following an increase in water tariff for non-domestic and special category consumers from Jan 1 this year.

According to PBA's annual report 2022, its substantial shareholders include the Penang State Secretary with 55% equity interest and the Penang Development Corp with a 10% stake. It noted that the Penang State Secretary also holds one "special share".

Shares in PBA last traded at 80 sen on Wednesday (June 7), giving the group a market capitalisation of RM263.38 million.

Source: TheEdge - 9 Jun 2023

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