Timah Resources Reports 13% Revenue Drop Amid Power Plant Incident

Revenue and Operational Performance

Timah Resources Limited has disclosed a challenging first half of fiscal 2025, with revenue falling 13% to RM3.24 million compared to the same period last year. The decline primarily stems from reduced sales in renewable energy, a core segment for the company. Despite this setback, the company’s Biogas Power Plant demonstrated notable operational efficiency gains in the first quarter, boosting power export efficiency by 25% year-on-year, a performance well above the national average.

Flashover Incident Disrupts Q2 Output

The positive momentum was abruptly interrupted in the second quarter by a flashover incident at the plant’s 33kV switchgear busbar on 12 May 2025. This electrical fault, attributed in part to unstable third-party grid conditions, caused a sharp 42% decline in power exports. The incident has forced a suspension of operations, with repair work delayed due to the sourcing of critical parts from overseas. Timah Resources now anticipates resuming full operations by the third week of August 2025.

Mitigation and Future Safeguards

In response to the incident, the company is pursuing an insurance claim to offset repair costs and is implementing a series of long-term measures to prevent recurrence. These include upgrading high-voltage and low-voltage protection systems, enhancing routine maintenance schedules, and increasing inventory of critical spare parts. Historically, the plant had maintained consistent uptime with no major breakdowns since Q3 2024, underscoring the unusual nature of this disruption.

Subsidiary Profitability and Strategic Outlook

While the Biogas Power Plant faced operational hurdles, Timah’s subsidiary, Mistral Engineering Sdn. Bhd., sustained profitability with a profit before tax of approximately RM159,595. The group remains cautiously optimistic about returning to full operational capacity and recovering profitability in the near term. However, management has signaled prudence regarding dividend declarations amid ongoing external challenges and market uncertainties.

Looking Ahead

Timah Resources continues to explore strategic initiatives aimed at long-term sustainability and shareholder value enhancement. The company’s ability to navigate the current operational disruption and external market pressures will be critical in shaping its financial trajectory for the remainder of 2025 and beyond.