SEREMBAN, Sept 7 — State water concessionaire Syarikat Air Negri Sembilan (SAINS) recorded a net loss of RM1.2 million from January to July 31, 2021, said Mentri 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 legislative assembly here today.
The Sikamat assemblyman was replying to a question from Datuk Adnan Abu Hassan (BN-Senaling) who wanted to know the financial position of SAINS.
The mentri besar said the main expenses involved were 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 per cent, mainly arising from industrial and commercial accounts that could not operate during the movement control order period.
“Water tariffs have not changed but operating costs go up between 5 and 7 per cent every year.
“Therefore, SAINS had been implementing cost-saving measures especially in terms of electricity consumption efficiency at the plant as the cost of electricity accounted for 24 per cent of the company’s total operating costs,” said Aminuddin.
He added that the cost constraints were due to water pipes and asset repairs because 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 in the research stage of using solar panels in its plant and industrial buildings,” said the mentri besar. — Bernama