KUALA LUMPUR (May 27): UEM Edgenta Bhd posted a 45% drop in net profit to RM20.49 million or 2.52 sen per share for the first quarter ended March (1QFY16), from RM37.17 million or 4.57 sen per share a year ago, due to lower revenue in infra services and integrated facilities management.

Revenue dipped by 6.8% to RM651.82 million, from RM699.29 million, the group told Bursa Malaysia in a filing today.

It said the strengthening of New Zealand dollar against the ringgit gave rise to higher costs of RM10.2 million that affected the profit in its asset consultancy division.

High profit before tax of RM3 million was obtained in its property division due to higher revenue, the group said.

UEM Edgenta said for financial year ending December (FY16), its performance would be affected by the lower contribution from the hospital support services sector in Sabah and Sarawak.

This is due to the reduction in equity stake from 100% to 40% in companies providing services in the two states.

However, UEM Edgenta said the impact will be partially offset by a three-year bio-medical engineering maintenance services (BEMS) contract, valued at RM91.8 million (or RM30.6 million per annum).

It was recently secured from Sedafiat Sdn Bhd, the associate company in Sabah, to provide services to hospitals under the operation of the Health Ministry in Sabah.

It added that the impact would also be mitigated by opportunities for both infra services and asset consultancy divisions to participate in upcoming rollout of infrastructure projects, such as the Pan Borneo Sarawak and Sabah highways.

The acquisition of 80% equity interest in KFM Holdings Sdn Bhd on April 6 would also reduce the impact on the group as it is expected to contribute positively, the group said.

“UEM Edgenta will continue its efforts to grow the business and with the foregoing, is cautiously optimistic of being able to sustain the results in 2016,” it said.

The counter rose six sen or 1.6% to RM3.82 today, for a market capitalisation of RM3.12 billion.