Friday 29 Mar 2024
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KUALA LUMPUR (Aug 9): Infrastructure firm Taliworks Corp Bhd saw its net profit rise 8 times to RM76.19 million or 6.3 sen a share in the second quarter ended June 30, 2016 (2QFY16) from RM9.49 million or 0.87 sen a share a year ago, on the back of a one-off gain of RM65.8 million arising from the disposal of its China waste management division.

Revenue increased by 4.8% to RM76.83 million in 2QFY16 from RM73.3 million in 2QFY15.

Earnings before interest, tax, depreciation and amortisation (Ebitda) from continuing operations grew 40.3% to RM33.1 million from RM23.6 million. This was mainly due to higher income generated from its water treatment, supply and distribution businesses, and its toll operations that was reflected by the toll increase effective Oct 15, 2015, as well as contribution from newly-acquired SWM Environment Holdings Sdn Bhd, which was completed in May.

SWM Environment contributed RM1.8 million to the group's pre-tax profit in the current quarter.

Taliworks also declared a second interim dividend of two sen per share amounting to approximately RM24.2 million for the financial year ending Dec 31, 2016 (FY16), payable on Sept 15. This brings Taliwork's total dividend payout to RM48.4 million for the year.

For the first half period (1HFY16), Taliworks tripled its net profit to RM75.96 million or 6.28 sen a share from RM24.52 million or 2.25 sen a share a year ago, while revenue rose 5.5% to RM152.05 million from RM144.15 million.

"It is reassuring to see that our recent disposal of our waste management operations in China has proven positive, as reflected in our improved financial performance and our gearing level for this quarter. The disposal has enabled us to streamline our overall operations and eliminate the previous expenses that were required to maintain our China operation," said Taliworks executive director Datuk Ronnie Lim in a statement today.

"We are confident that we will be able to maintain a sustainable and profitable business, in view of our new business strategy that focuses on mature utilities and infrastructure business," he added.

Going forward, Taliworks expects the Sungai Selangor Water Treatment Works Phase 1 operations, which is the main contributor to the group, will continue to run its production above its design capacity of 950 million litres per day (MLD) due to continuous increase in demand for treated water in the Klang Valley.

The average metered production for the financial period stood at about 1,001 MLD compared with 950.3 MLD a year ago.

"While consolidation or restructuring of the Selangor water sector is pending the final outcome, the group will continue to provide for discounting on a deferred payment consideration on delay in payments from Syarikat Pengeluar Air Sungai Selangor Sdn Bhd," it said.

In the construction segment, it said the ongoing Mengkuang Dam Expansion Project in Penang is expected to continue to contribute positively to the group given that the project has advanced into its fifth year of construction.

Taliworks shares closed one sen or 0.69% lower in the morning session today at RM1.43, with 60,600 shares traded. Its market capitalisation stood at RM1.73 billion.

 

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