The Bursa Malaysia-listed company recorded a profit after tax (PAT) of RM37.3 million last year, down from RM61.8 million in 2016, its chief executive officer Jaseni Maidinsa revealed today.
Jaseni said one of the reasons was because PBA Holdings subsidiary Penang Water Supply Corporation (PBAPP) discounted water bills for all 604,547 water consumers in Penang for one water supply billing cycle, in support of the “Pulau Pinang Bangkit” flood relief efforts in November last year.
“This corporate social responsibility (CSR) gesture cost PBAPP about RM16.6 million in revenue.
“The second reason is that PBAHB incurred an income tax expense of RM3.7 million in 2017, as compared to RM7.1 million in income tax refunds in 2016, due to an extension in reinvestment allowances.
“These two factors reduced PBAHB’s PAT by a total of RM27.4 million year-on-year,” he said after the PBAHB annual general meeting here today.
Also present was Penang Chief Minister Chow Kon Yeow, who is chairman of PBAPP and PBAHB.
However, Jaseni said, PBAHB managed to reduce its cost of sales and administrative costs by about RM1.9 million in 2017.
Jaseni highlighted three key PBAPP water supply initiatives to ensure sustainable water supply management in Penang.
They were the RM125 million Butterworth-to-Penang Twin Submarine Pipeline Project which will facilitate more efficient pumping of more treated water from Sungai Dua. It is scheduled for completion in December 2020.
The second initiative is the expanded Mengkuang Dam, which Jaseni said Penang is waiting for the Energy, Green Technology and Water Ministry to hand over the expanded 73.5 billion-litre dam in good working order.
“The key conditions for the handover include the ministry’s allocation of RM100 million for a new barrage across Sungai Muda at Rantau Panjang and the ministry’s commitment to construct the originally specified RM80 million Lahar Yooi Pumping Station under its Rolling Plan 4.
“Another condition is the ministry’s commitment to complete the originally specified RM100 million raw water pipeline project from the Mal Sulong Pump House in Central Seberang Perai to the Sungai Dua Canal by March 2020,” he said.
Jaseni said PBAPP will also seek approval from the National Water Services Commission (SPAN) for its proposed review of Penang’s water conservation surcharge (WCS).
He stated that on April 28 last year, PBAPP had applied to SPAN to review the WCS from RM0.48 per 1,000 litres to RM1 per 1,000 litres, only for domestic consumption above 35,000 litres per month.
The WCS will not affect 77% of Penang’s 518,001 domestic consumers who use less than 35,000 litres of water per month.
“The objective of the WCS review is to convince the remaining 23% of Penang domestic consumers to use water wisely at home.
“PBAPP’s target is to reduce Penang’s per capita domestic consumption from 276 litres/capita/day (l/c/d) to 257 l/c/d as soon as possible,” he said, adding that the national average last year was 209 1/c/d.