KUALA LUMPUR (Nov 29): Mudajaya Group Bhd's net loss in the third-quarter ended Sept 30, 2018 has narrowed to RM49.6 million from RM59.08 million a year ago, mainly attributable to the development of the 49 megawatt (MW) solar photovoltaic energy plant at Sungai Siput, Perak which commenced work in 4Q17, coupled with work progress in Mass Rapid Transit 2 and Light Rail Transit 3.
Revenue increased by 58.74% to RM148.18 million from RM93.35 million. Its loss per share has narrowed to 8.38 sen from 10.82 sen.
For its cumulative nine months of 2018 (9M18), net loss widened by 46.23% to RM160.99 million from RM110.09 million mainly because of higher loss before tax in the current period due to the group’s share of losses from associated company, RKM Powergen Pvt Ltd.
Its revenue increased by 59.49% to RM636.93 million from RM399.35 million a year ago, due to continued development of the 49MW solar photovoltaic energy plant in Perak.
The group is expected to sustain its operations over the next two to three years, with its order book of RM1.8 billion and pending finalisation of LRT3 projects contract value revision.
“Post Budget 2019, the outlook for construction sector remains challenging due to deferment of mega infrastructure projects. The group will continue to participate actively in open biddings of both public and private projects and it is confident of replenishing its order book given its vast experience and competitiveness in the construction segment,” said the filing with Bursa Malaysia.
The group added that its investment in the IPP sector in India via its 26%-owned associate RKM continues to pose a very challenging prospect.
“RKM is currently working with its lenders on a stressed asset resolution plan under the Reserve Bank of India framework. Meanwhile, the conditional Share Sale and Purchase Agreement
dated Feb 28, 2018 for the proposed disposal of 7.07% equity interest in RKM which will reduce the group's exposure in the Indian IPP investment is still subject to fulfilment of conditions precedent.
“Despite limited control and influence, the group's management continues to engage RKM to ensure that all four units of the IPP development are ready for commercial operations,” the group said adding that currently, RKM is supplying up to 350 Mega Watts (MW) power to several power distribution companies in the State of Uttar Pradesh pursuant to the Power Purchase Agreement dated 15 March 2016.
Additionally Mudajaya said that RKM has entered into a Pilot Agreement for Procurement of Power (PAPP) with PTC India Limited for the supply of 550 MW power from Unit 2 & 3 for a period of 3 years, and it is expected to commence power sale in February 2019.
Its investment in the Large Scale Solar Photovoltaic Power Plant of 49MW at Sungai Siput, Perak is expected to generate recurring income for the group for the next 21 years.
Mudajaya will continue to pursue investments both locally and overseas to build up its concession asset base, especially in the renewable energy sector to provide recurring income streams to cushion against the potential volatility of the construction business.
No dividend was declared during the period ended Sept 30, 2018.
At market close, Mudajaya’s share price was not traded at 34.5 sen, with a market capitalisation of RM203.51 million.