SEREMBAN – State water concessionaire Syarikat Air Negri Sembilan (Sains) recorded a net loss of RM1.2 million from January to July 31, said Menteri Besar Datuk Seri Aminuddin Harun.
He said for the period, expenditure was recorded at RM167.6 million, while revenue was RM166.4 million.
“The total water revenue includes RM159.3 million and other revenue of RM7.1 million,” Aminuddin said during the state assembly sitting here today.
The Sikamat assemblyman was replying to a question from Datuk Adnan Abu Hassan (Senaling-Umno), who wanted to know the financial position of Sains.
The menteri besar said the main expenses involved are water asset lease rental from Pengurusan Aset Air Bhd (RM40.9 million), electricity (RM38.9 million), staff emoluments (RM25.7 million), water supply and plant repairs (RM17.3 million), chemicals (RM7.6 million), and asset depreciation (RM10.8 million).
He also noted that the Covid-19 pandemic affected the company’s revenue by between 4% and 5%, mainly arising from industrial and commercial accounts that cannot operate during the movement control order period.
“Water tariffs have not changed, but operating costs go up between 5% and 7% every year.
“Therefore, Sains has been implementing cost-saving measures especially in terms of electricity consumption efficiency at the plant, as the cost of electricity accounted for 24% of the company’s total operating costs,” said Aminuddin.
He added that the cost constraints are due to water pipes and asset repairs, as assets over 50 years old require high costs for continuous repairs.
“The company is looking for alternative solutions to reduce reliance on contractors for the repair of these water supply assets.
“Sains is also currently in the research stage of using solar panels at its plant and industrial buildings.” – Bernama, September 7, 2021
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