Bus iness Overvi ew 01 Sect ion 22 Ranhi ll Ut i l i t i es Berhad OUR STRATEGIC SNAPSHOT ENVIRONMENT SECTOR Business Strategies / Focus Areas Outputs, Performance Highlights & Achievements, Values Created Potential Risks, Issues & Challenges Opportunities Strategic Priorities • Continued implementation of COVID-19 SOPs across water operations. Strict adherence to SOP discipline is necessary to prevent operational disruptions and to protect staff and stakeholders from infection risks. • Maintaining a high level of operations to ensure continued achievement of the industry regulator’s KPIs. • Intensified focus on addressing NRW levels, which include pipe rehabilitation and replacement works, meter replacement and other measures. • Initiated a chemical substitution programme at several WTPs to reduce OPEX. • Implementation of new technologies, i.e. AquaSMART, to increase water yield, reduce costs and achieve increased efficiencies. • Expanding existing and constructing new WTPs. • Harnessing RE to power water operations. • Continued business development activities, targeted at the industrial water sector and potential non-revenue water (“NRW”) customers. • Leveraging technology and innovation for business growth. • Talent development and retention. • RM1,173.7 million in revenues. • RM261.6 million PBT. • Met or exceeded all of SPAN’s KPIs save for NRW loss, which marginally exceeded the KPI of 26% (FY2022: 26.3%). • 70,929 leaks detected and rectified through ALC activities. • Initiated solar farm proposal to fully power water operations in Johor. • Implementation of first pollutant removal system. • Creating seamless workflow and moving progressively towards greater implementation of paperless, webbased solutions, and significant cost savings. • 2,895 water theft cases successfully reported and 904 imposed with water charges. • Continued progress on construction and upgrade of several WTP projects. • Completed upgrading of the Amata Rayong WWTP, thus increasing wastewater treatment capacity by 10% to 54 MLD. • Continued rising costs especially energy costs. • Shortage of raw water quantity especially in locations with low water reserve margins. • Discontinuity of water operator licence from SPAN and Raw Water Abstraction Licence from BAKAJ. • Continued delays in reduction of rental for leased assets from PAAB. • Change in Government regulations. • Continued delays in upward tariff revision. • Extreme weather events caused by climate change and global warming. • Increasingly poor river water quality leads to increased treatment costs. • Challenging incoming water and wastewater quality. • Dwindling river water supply. • Delays in funding and progress for pipe rehabilitation and replacement works. • Acts of terrorism, security breach, vandalism, theft, etc. that cause disruption to WTP and WWTP operations. • Lack of skilled and specialised water industry talents. • Overspending or underspending on technology and to disburse technology budgets. • Exploration of water concessions in other states in Malaysia as well as Indonesia. • Growing demand for water supports stability of revenues and necessitates expansion of construction of new water assets. • Increased tariffs and CGPP support revenue and earnings growth. • Successful negotiation of lower lease rental rates and capping maximum rental rates from PAAB will also support margins • Government support to addressing NRW and using reclaimed water. • Provide and enable new prospect business models and income sources through robust technology. • Reinstatement of a downward trend for NRW by completing all five Rehab packages. • Completion of all WTP expansion, upgrade activities as well as construction of additional WTPs. • Lobbying regulators and government to impose harsher sentences on polluters. • Develop strategic partnerships with Original Equipment Manufacturer (“OEM”) product manufacturers. • Continued talent development especially for specialised and niche skillsets. • Developed engagement with technical resources identify applicable and potential technology ideas and adapt to business operations. Note: Please refer to the Management Discussion and Analysis section of this report for further details.
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