KUALA LUMPUR (Feb 25): Econpile Holdings Bhd recorded its first quarter in the red since the group was listed in 2014, with a net loss of RM34.45 million in the three months ended Dec 31, 2018 (2QFY19), versus a net profit of RM22.73 million a year ago.

The weaker performance was due to a 30.7% jump in cost of sales to RM168.89 million from RM129.26 million, while revenue retreated 8.6% to RM148.18 million from RM162.17 million.

Consequently, it booked a loss per share of 2.58 sen in 2QFY19 against an earnings per share of 1.7 sen in 2QFY18, its quarterly results announcement today showed.

For the first-half period ended Dec 31, 2018 (1HFY19), Econpile recorded a net loss of RM19.4 million versus a net profit of RM43.92 million in the corresponding half-year period in FY18, despite revenue rising 8.3% to RM348.48 million from RM331.07 million.

"Whilst there is a slight increase in revenue for the six months current financial period as compared to preceding year corresponding period, the group's performance was affected by (1) approximately RM18.5 million losses caused by the delay and idling costs from two infrastructure projects caused by overall project rationalisation of costs and changes in design and/or scope of work by main contractors; and (2) approximately RM15.4 million costs over-run in a property development project.

"The group's loss before taxation is also affected by an impairment of trade receivable amounting (to) RM15.1 million as a result of the appointment of Receiver and Manager by a secured creditor against the particular debtor in November 2018," it said.

Notwithstanding the challenges faced in 2QFY19, Econpile said it "remains optimistic on new job wins both in private-initiated property development projects and also ongoing infrastructure projects which are technically challenging in both civil engineering and deep-basement works". It also expects the construction sector's outlook to remain positive for FY19.

Econpile shares fell 2 sen or 3.6% to close at 53 sen today, giving the group a market capitalisation of RM708.87 million. In the past 12 months, the stock has declined near 55%.