Ranhill

Engineering company in Malaysia with interests in oil, gas, electricity, water and other infrastructure.

Ranhill Utilities has a 30-year concession expiring in 2029 to source, treat and supply water to 800,000 customers and 2.2 million consumers in the state of Johor. We anticipate spending over RM13 billion on capital expenditure works to increase treatment and distribution capacity by 1,337 millilitres per day during this period.

SAJ Holdings, a wholly owned subsidiary of Ranhill Utilities, holds a 30-year concession for the treatment and supply of water in the state.

In contrast to Kelantan, Johor has the highest domestic and industrial tariff structures in the country. The last tariff revision was done in July last year, giving the group a 30% increase in its tariff rate to RM1.18 per cu m for domestic users.

Its concession agreement with the state government allows for scheduled increases in SAJ's tariff structure every three years as long as the group maintains an internal rate of return of between 14% and 18 %.

If the gazetted tariff rate was to fall below the scheduled tariff rate, the state government will have to compensate the company for the difference.

Johor has one of the highest levels of connectivity to end users, at 99.7% in 2001 and NRW of 37.5% now.

Financially, Ranhill Utilities has grown from strength to strength. It earned a net profit of RM80.2 million in 2002 and RM94.5 million last year.

Ranhill Utilities is currently (2004) vying for the water privatisation projects in Sabah and Melaka.

Employees: 
1850

Home country:

Subsidiaries

Company namesort icon Percentage Operates in
SAJ 100.00 Malaysia