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Solarvest Records Its Strongest First Quarter Net Profit Of RM4.3 Million

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Clean energy specialist, Solarvest Holdings Berhad has today announced its first quarter financial results for the period ended 30 June 2022 (1QFY23). 

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Revenue came in at RM52.7 million for the quarter, more than doubled from the RM22.8 million attained last year. The improvement was attributed to comparatively higher construction activities as operations during 1QFY22 were heavily impacted by the Full Movement Control Order (FMCO).

The Group’s engineering, procurement, construction, and commissioning of the solar energy solution segment remained the highest revenue contributor with RM50.8 million, representing 96.5% of the total. The balance of RM1.8 million was derived from operations and maintenance of the solar energy systems, sales of electricity through solar energy, and other activities. The revenue generated from O&M of the solar energy systems has consistently exceeded the RM1 million mark in each of the past three quarters.

In tandem with the top-line growth, profit after tax and non-controlling interest stood at RM4.3 million in 1QFY23, compared to RM0.2 million in 1QFY22.

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Executive Director and Group Chief Executive Officer of Solarvest, Mr Davis Chong Chun Shiong said, “We are delighted to have turned a corner after a difficult FY2022. 1QFY23 was the best first quarter results achieved since the Group’s founding. While cost pressure remains a prevalent risk to the industry, we are confident that FY2023 will be a smooth-running year operationally. This would allow us to convert a good amount of our RM727 million unbilled order book into earnings.” 

In August 2022, Solarvest was notified by the Energy Commission of the extension of the Schedule Commercial Operation Dates (SCOD) for all three projects awarded under the fourth cycle of the Large Scale Solar scheme (LSS4) to 31 December 2023. In addition, the effective period of the relevant power purchase agreements (PPA) has also been extended from 21 years to 25 years.

“The new measures announced by the Energy Commission are good news to us and the industry at large. The prolonged PPA will offset some of the cost pressure we are facing and improve the internal rate of return of our solar assets. Regarding the extended SCOD, we are still targeting to complete two of the projects by March 2023. In other words, we can expect revenue contribution from electricity sales to markedly increase in FY2024, paving our way towards the 30% recurring income target.”

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“Looking ahead, we believe that there is ample room for growth in Malaysia. Earlier, the Prime Minister indicated on the introduction of a virtual power purchase agreement (VPPA) concept with an initial quota of 600 megawatts in the fourth quarter of 2022. This is an encouraging first step towards a more liberalized energy market which also bodes well for Solarvest,” Mr Davis concluded.   

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