Friday 29 Mar 2024
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KUALA LUMPUR (Feb 20): UEM Edgenta Bhd announced a special dividend of 18 sen per share — together with a second interim dividend of 5 sen per share in respect of its financial year 2017 (FY17) — after its fourth quarter net profit jumped about 20 times following the disposal of its entire stake in Opus International Consultants Ltd (OIC) last year.

Its net profit for the fourth quarter ended Dec 31, 2017 (4QFY17) surged to RM324.81 million from RM16.49 million a year earlier, after booking in a gain of RM274.91 million from the disposal of its 61.2% stake in OIC, held via indirect wholly-owned unit, Opus International (NZ) Ltd. The disposal was completed in December.

The special dividend is payable on April 18, while the second interim dividend is payable on May 17. The total 23 sen payout, in respect of its FY17, brings its full year payout to 31 sen, versus 7 sen in FY16.

Excluding the discontinued operations, its net profit rose 15% y-o-y to RM54.07 million from RM47.16 million, UEM Edgenta’s Bursa Malaysia filing today showed.

For the full FY17, UEM Edgenta’s net profit spiked 422% year-on-year to RM418.19 million from RM80.06 million, while revenue grew 34% y-o-y to RM2.12 billion from RM1.58 billion.

But its pre-tax profit for FY17 was lower at RM172.9 million compared with RM181.5 million in FY16, due to higher interest expense incurred for its Murabahah term facility and sukuk, and higher amortisation of intangible assets.

Its consultancy division posted lower pre-tax profit contribution, due to works requiring external consultants which resulted in full revenue pass through. This was partly offset by higher contribution from the healthcare services and infra services divisions.

The group said it started off 2018 on a strong financial footing with a stronger balance sheet and lower gearing following the disposal of OIC, and is now focused on its three core operations, namely consultancy, services, and solutions to the healthcare, infrastructure and real estate sectors.

“Moving forward, UEM Edgenta will continue to focus on operational excellence initiatives to drive better margins and profitability. The company will continue to realise synergies from its acquisitions, and deploy technology-based enablers to its customers.

“Coupled with the healthy economic outlook for Malaysia, the board of directors is optimistic of achieving positive financial performance in 2018,” it said.

UEM Edgenta shares closed unchanged at RM2.34 today, giving it a market capitalisation of RM1.95 billion.

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