Tasek Corp declares special dividend of 50 sen per share in conjuction with 50th anniversary

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KUALA LUMPUR (Nov 4): Tasek Corp Bhd saw its net profit fell 7.1% to RM21.47 million in the third quarter ended Sept30, 2014 (3Q FY14), down from RM23.12 million a year ago, mainly due to thinner profit margins from the cement segment arising from intense price competition.

In a filing with Bursa Malaysia this evening, the cement manufacturer said the lower sales volume from the concrete segment, lower share of profit from the group’s associated company as well as drop on interest income had also affected its net profit.

The group’s quarterly revenue grew 3.3% to RM148.68 million, up from RM143.93 million a year before amidst stronger demand for cement in the domestic market.

In conjunction with the company’s 50th anniversary, Tasek has declared a special interim single-tier dividend of 50 sen apiece, payable on Dec 8, 2014. It has set an ex-date for its dividend on Nov 17 this year.

For the nine months period, Tasek’s net profit grew by 16.3% to RM77.49 million, from RM66.65 million a year earlier, driven by higher market demand.

The group’s revenue also grew 14.5%, from RM422.02 million to RM483.09 million, thanks to better pricing in both sales of cement and ready-mixed concrete.

Commenting on the future prospects, Tasek said the outlook for the construction sector in fourth quarter of 2014 is expected to remain positive.

“The ongoing government’s MRT (Mass Rapid Transit) projects and LRT line extension are expected to continue to lead the construction sector’s growth for the fourth quarter this year,” it said.

Share price of Tasek remained unchanged today at the 52week high of RM17, with a market capitalisation of RM2.059 billion.