Taliworks water, toll business slip in 2Q, declares 1.65 sen dividend

Taliworks water, toll business slip in 2Q, declares 1.65 sen dividend
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KUALA LUMPUR (Aug 19): Taliworks Corp Bhd posted a higher net profit of RM11.7 million for the second quarter ended June 30, 2020 (2QFY20), from RM10.71 million a year ago, on higher returns from investment designated at fair value.

The group declared a dividend of RM33 million or 1.65 sen per share for the quarter — up from 1.2 sen in 2QFY19.

However, operating profit actually fell 15.91% to RM21.79 million from RM25.92 million, on the back of lower contributions across all fronts, led by the water treatment business.

This was mainly due to provisions in relation to the cessation of its Langkawi operations in end-October, coupled with lower water demand in Langkawi and lower bulk sales rate in Selangor.

Meanwhile, the toll and construction business was also impacted by the Movement Control Order, and were the leading contributor to the quarterly revenue decline of 14.56% to RM76.1 million, from RM89.08 million.

For the half-year period ended June 30, Taliworks’ net profit rose 23.45% to RM27.61 million from RM22.36 million, despite revenue retreating 9.89% to RM160.36 million from RM177.85 million.

“With the cessation of Langkawi operations, the revenue and profitability of the group will be impacted towards the last quarter of the year,” Taliworks said. 

On prospects, Taliworks said it has taken the prudent step of slowing down non-critical repair works and capital expenditure spending, where possible.

In the slim-margin construction segment, Taliworks said the CRJ4 project in Cyberjaya is its only remaining ongoing project. 

“The group is continuing with its efforts to tender for more infrastructure projects to replenish its order book,” it added.

Shares of Taliworks closed unchanged at 84 sen today, valuing the group at RM1.7 billion.