Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Nov 29): Ahmad Zaki Resources Bhd’s net profit in the third quarter ended Sept 30, 2017 (3QFY17) grew 17.7% year-on-year to RM10.03 million from RM8.52 million, as the group was subjected to lower tax expense during the financial quarter under review.

In a filing with Bursa Malaysia, Ahmad Zaki said its tax expense in 3QFY17 amounted to RM9.73 million, compared with RM24.29 million incurred a year earlier.

Quarterly revenue grew 8.8% y-o-y to RM294.75 million from RM270.85 million, largely attributed to improved operations of the Plantation and Oil and Gas (O&G) divisions.

Ahmad Zaki said for the quarter under review, the plantation division’s revenue increased significantly to RM36.1 million from RM4.1 million in the previous year, mainly due to the sales of crude  palm oil (CPO) from the newly commissioned mill in February this year.

“In-line with higher revenue recorded, the plantation division managed to narrow its pre-tax loss,” said the group, adding that including adverse forex adjustments, pre-tax loss stood at RM4.6 million compared with RM8.8 million in 3QFY16.

Meanwhile, revenue from the oil and gas division for 3QFY17 more than doubled to RM18.6 million  from  RM9.2  million a year ago, mainly due to the inclusion of the Tok Bali Supply Base (TBSB) as well as  higher activities at the Kemaman Supply Base.

The division continued to post pre-tax profit, of RM900,000, albeit lower than the RM1.7 million recorded in 3QFY16, due to the continued losses at TBSB as the supply base has yet to reach its optimal level  of operation.    

As for the cumulative nine months of FY17 (9MFY17), Ahmad Zaki recorded a net profit of RM31.99 million, which was 68.9% higher than the RM18.93 reported in 9MFY16, while revenue fell 7.3% y-o-y to RM782.42 million from RM844.28 million.

On prospects, the group said it is actively tendering for more jobs including infrastructure projects, commercial buildings, and government buildings, and expects to grow its order book, which currently stands at RM3.8 billion as at Sept 30, 2017.

“With future government undertakings such as the East Coast Rail Link, High Speed Rail, and Mass Rapid Transit 3, the group intends to leverage on its position as a reputable builder of distinction to tap into the many opportunities on offer in the sector,” it said.

As for the concession segment (which now consists of a concession for the maintenance and facilities management of IIUM Medical Centre in Pahang lasting till 2038), Ahmad Zaki said the division is expected to provide it with stable recurring income over the years ahead.  

Meanwhile, the O&G division is still challenging, although it has shown signs of improvement on steady increase in the price of crude oil during the recent months, said Ahmad Zaki.

From a pure bunkering operator out of the Kemaman Supply Base, the division’s prospects are positive with the inclusion of TBSB as a full-fledged supply base in East Coast of Peninsular Malaysia,” said the group.

“Going forward, the group intends to continue to invest and install  more facilities to better accommodate current customers as well as  to attract more customers to set up their base of operations at TBSB,” it added.

On the other hand, the Plantation segment is on track to plant a further 1,200 ha of palms in 2017, bringing the total planted area to 10,000 ha. From the planted palms, about 51% of them will be matured palms, thus increasing the acreage yield and generating higher revenue for the group going forward, Ahmad Zaki said.

As for the property business, Ahmad Zaki in FY17, it has launched one residential development project in Paka, Terengganu, which has an estimated gross development value (GDV) of RM18.9 million.

“With the addition of previously-launched developments and increased sales and marketing efforts, the division is expected to continue to  contribute positively to the group,” it said.

Ahmad Zaki settled unchanged at RM1.05, valuing the group at RM558.13 million.

      Print
      Text Size
      Share