KUALA LUMPUR, Nov 23, 2015:
1Malaysia Development Bhd (1MDB) is among the top five corporations under the Ministry of Finance (Incorporated) companies that reported the highest profit before tax in 2013, according to the National Audit Department in its Third Series of the 2014 Auditor-General’s Report’s (AG) report.
The company reported RM877.67 in pre-tax profit for 2013 – which indicated over 100% increase compared with RM44.72 million it recorded in 2012.
According to the AG’s Report, the increased profits were contributed by the revenue from 1MDB’s energy division as well as income from property revaluation and financing leases after the company took over Powertek Energy Sdn Bhd and Mastika Lagenda Sdn Bhd.
1MDB’s revenue for its financial year ending 31 March 2013 was recorded at RM2.59 billion from RM633.2 million in the corresponding period in 2012.
The company ventured into the power sector after it acquired Tanjong Energy Holdings Sdn Bhd – a power generation business owned by billionaire Ananda Krishnan – for RM8.5 billion in May 2012.
Tanjung Energy was later renamed as Powertek Energy.
1MDB has also bought 97.7% stake in Mastika Lagenda from Genting Bhd for RM2.30 billion.
The acquisition is seen as a step towards greater efficiency and a more sustainable energy security in the long-term, as power availability was critical to maintain investors’ confidence and to support the economic growth of Malaysia, 1MDB said in a statement.
Meanwhile, the other four companies that recorded a pre-tax profit in 2013 according to the AG’s Report include Petroliam Nasional Bhd (registered RM94.26 billion), Khazanah Nasional Bhd (RM4.6 billion), Bank Pembangunan Malaysia Bhd (RM494.7 million) and Pembinaan BLT Sdn Bhd (RM441.18 million).