KUALA LUMPUR (Aug 26): Cahya Mata Sarawak Bhd's (CMS) net profit fell to RM39.6 million in the second quarter ended June 30, 2022 (2QFY22) from RM47.4 million posted a year ago.

The lower net profit was mainly due to the higher unrealised foreign exchange (forex) loss of RM16 million recorded for 2QFY22 due to the strengthening of US dollar, compared with the unrealised forex gain of RM150,000 recorded for 2QFY21.

The softer performance stemmed from lower profit contributions by all the divisions as the global impact from logistical challenges affected the construction sector in Sarawak due to the rising raw material prices.

Quarterly revenue increased to RM209 million versus RM185 million posted for the same period last year, the company's Bursa Malaysia filing dated Aug 26 showed.

Earnings per share fell to 3.69 sen from 4.41 sen recorded a year ago.

For the cumulative first half ended June 30, 2022 (1HFY22), CMS reported a total revenue of RM423.8 million, representing an increase of 9% compared with 1HFY21's RM387.06 million, due to higher contributions from the cement, trading and road maintenance divisions.

Meanwhile, 1HFY22 net profit fell to RM111.6 million from RM125.1 million a year ago.

On prospects, CMS said it expects 2HFY22 to be challenging.

"The management holds a longer-term view that once these issues are resolved, activities will further pick up and will benefit the group's businesses.

"The phosphate plant project under MPAS is scheduled for full commissioning by the end of 2022. The management is focusing on achieving this goal and is closely monitoring the key items and milestones for the success of this project," CMS added.