KUALA LUMPUR (Aug 18): Ranhill Utilities Bhd (KL:RANHILL) expects its water business, which boosted the company's April-June net profit to RM17.77 million — more than double the RM6.94 million it made in the previous quarter — to continue to see strong growth going forward, due to robust demand from new data centres.

The group, which is the sole water utility operator for Johor via its subsidiary Ranhill SAJ Sdn Bhd, is also expecting demand to come from strong economic outlook and catalytic projects like the Johor-Singapore Special Economic Zone and Special Financial Zone.

The earnings growth came despite revenue for the quarter under review slipping 1.61% to RM504.9 million from RM513.15 million, compared to the January-March quarter, its bourse filing showed. This decline was primarily attributed to weaker contribution from the consultancy and services division. A year-on-year comparison was not provided as the company shifted its financial year-end from Dec 31 to June 30.

Meanwhile, the company said it cancelled its Djuanda source-to-water supply project in Indonesia late last year due to a shift in strategic business direction. "The company has fully accounted for the financial impact arising from the discontinuation of the project in its financial results for the year ended June 30, 2025,” Ranhill said in a bourse filing, without disclosing the amount.

The group reported a net profit of RM75.71 million for the 18 months that ended on June 30, 2025, on revenue of RM3.29 billion.

Ranhill Utilities, which is 53.2%-owned by YTL Power International Bhd, is also exploring opportunities to reduce its carbon footprint and advance energy transition initiatives.

A key project is its participation in the Corporate Renewable Energy Supply Scheme, which allows consumers to directly access renewable energy from developers, it said. In July 2025, the group submitted a bid to the Energy Commission of Malaysia for the development of a 100MW/400MWh Battery Energy Storage System.

The consultancy and services segment is also positioned to benefit from the 13th Malaysia Plan, which emphasises water reliability and transportation solutions, Ranhill said, adding it plans to leverage its expertise in water resources, treatment, distribution, irrigation and non-revenue water solutions to capitalise on projects across Malaysia.

On Monday, Ranhill Utilities’ shares closed two sen or 1.46% higher at RM1.39, giving the group a market capitalisation of RM1.8 billion.