BAYAN LEPAS, July 21 – PBA Holdings Bhd (PBAHB) held its 23rd Annual General Meeting, where it announced a profit after tax of RM77.12 million for the financial year 2022. The meeting also approved a final dividend of 1.5 sen per share, totaling RM4.96 million, which will be paid out to all shareholders on July 28, 2023. The company’s dividend payout for 2022 amounts to 3.0 sen per share, marking the 22nd consecutive year of dividend payments. PBAHB, whose principal subsidiary is PBAPP, the licensed water supply operator in Penang, reported a profit before tax (PBT) of RM33.0 million for the financial year 2022.
However, a significant portion of the profit after tax was attributed to deferred tax assets recognized for unutilized reinvestment allowance. The company has continuously rewarded its shareholders with dividends since 2001. PBAPP, known for charging the lowest domestic tariffs in Malaysia, provided domestic water subsidies amounting to RM103.71 million in 2022. This allowed them to maintain the average domestic tariff for the first 35,000 liters per month at only 32 sen per 1,000 liters, which is significantly cheaper than the national average of 77 sen per 1,000 liters in 2020.
PBAPP’s commitment to affordable domestic water tariffs demonstrates its efficiency and dedication to its corporate social responsibility. In January 2023, PBAPP implemented higher non-domestic tariffs in compliance with the Federal Government regulation entitled “Water Services Industry (Rates for Water Supply Services) (State of Penang) (Amendment) Regulations 2022.” The higher tariffs are expected to increase PBAHB’s revenue in 2023. However, the company remains cautious in providing financial projections due to uncertainties in non-domestic water consumption and the potential impact on domestic water subsidies.
The company also addressed the challenges it faced in 2022 regarding the Sungai Muda incidents in Kedah, which affected water supply to approximately 450,000 consumers in Penang. These incidents highlighted the dependency of Penang on Sungai Muda as its primary raw water resource. To mitigate future risks, PBAHB emphasized the importance of the Mengkuang Dam Expansion Project (MDEP) and the “Penang-Perak Water Project” to ensure water security and provide a backup supply in case of disruptions. The MDEP, which is expected to be completed using a RM1.2 billion Federal grant, will offer a 1,000 million liters per day (MLD) backup water supply when fully operational.
The “Penang-Perak Water Project,” a state government-to-government (G2G) initiative, aims to tap into a second major raw water resource until 2050. PBAHB believes that the completion of the MDEP and the implementation of the “Penang-Perak Water Project” are the most rational and cost-effective solutions to address Penang’s water needs and minimize risks. The 23rd Annual General Meeting provided shareholders and stakeholders with insights into PBAHB’s financial performance, dividend distribution, and strategic initiatives to ensure a sustainable and secure water supply for the people of Penang.
