IGB 3Q net profit drops 40% due to write-off

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KUALA LUMPUR (Nov 25): IGB Corp Bhd’s net profit dropped 40% to RM34.2 million for its third quarter ended Sept 30, 2014 (3QFY14) from RM57.2 million a year earlier, due to several provisions taken during the quarter, which included a write-off of hotel properties in Pangkor Island amounting to RM43.8 million.

Revenue for 3QFY14, however, rose 3% year-on-year (y-o-y) to RM291.4 million from RM281.8 million.

IGB’s earnings per share (EPS) fell to 2.55 sen from 4.08 sen in 3QFY13.

“With regard to the group’s resort hotel, Pangkor Island Beach Resort located on Pangkor Island, the board has made a decision to redevelop the hotel which is more than 30 years old,” said IGB in a filing with Bursa Malaysia today.

For the nine months to Sept 30, 2014 (9MFY14), net profit contracted 4% to RM159.1 million from RM166.3 million a year ago, while revenue climbed 13% to RM880.5 million from RM776.7 million in 9MFY13.

Its EPS for 9MFY14 was slightly higher at 11.87 sen compared with 11.86 sen a year ago.

Going forward, IGB said it is optimistic of achieving better results for the financial year ending Dec 31, 2014.

The group will soon launch 41 units of strata bungalows called Park Manor, in Sierramas, Sungai Buloh here under its property development division.

IGB shares closed 2 sen higher at RM2.90 today, with a market capitalisation of RM3.87 billion.