Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 30): WZ Satu Bhd’s net profit in the quarter ended Nov 30, 2017 (1QFY18) slumped 94% to RM497,000 from RM8.5 million a year ago, mainly due to weaker results in the mining and civil engineering and construction segments, and losses incurred by its associates, which offset higher revenue in the period.

Its profit before taxation (PBT) declined by RM8.9 million to RM1.4 million from the previous year's corresponding quarter of RM10.3 million, it told Bursa Malaysia today.

It booked a share of loss in mining associates' results of RM800,000, compared to a share of profits of RM2.7 million in the comparative quarter, while its civil engineering, construction and oil and gas segments' PBT fell by RM3.5 million and RM1.3 million respectively from a year ago.

"Remaining subsidiaries [also] registered a lower PBT of RM700,000 compared with RM1.3 million in the comparative quarter," it added. The group's earnings per share dropped to 0.14 sen in the quarter, from 2.48 sen in 1QFY17.

Quarterly revenue, meanwhile, was 6% higher at RM138.16 million against RM130.17 million previously, helped by higher topline contribution from its oil and gas (O&G) division, though this was offset by lower revenue from other subsidiaries.

On prospects, WZ Satu said it will seek long-term contracts for its O&G division, which it expects to still be able to generate stable income for the group.

It is also optimistic that the moratorium on bauxite mining in Kuantan, Pahang — which is currently hurting its mining segment — will be lifted soon.

Meanwhile, it said its RM936 million combined order book “will ensure the group is kept busy for the coming financial year and beyond”.

Shares of WZ Satu traded unchanged at 92 sen, giving it a market capitalisation of RM320.96 million.

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