TH Heavy posts second profitable quarter

This article first appeared in The Edge Financial Daily, on February 28, 2019.
-A +A

KUALA LUMPUR: TH Heavy Engineering Bhd, 29.81%-owned by Lembaga Tabung Haji, posted a net profit of RM907,000 in the fourth quarter of financial year 2018 (4QFY18) ended Dec 31, 2018 — its second consecutive quarter in the black — after a string of losses in prior years.

In the previous year’s corresponding quarter, the group posted a net loss of RM33.37 million.

Its revenue surged 518.5% to RM2.18 million in 4QFY18 from RM352,000 a year earlier, contributed by facility charges for an ongoing project as well as higher fabrication construction activities during the quarter.

The group said its profit for the year was supported by reversal of project and finance costs following its schemes of arrangement (SOA) with creditors, lower impairment loss on receivables, lower impairment loss on property, plant and equipment and the one-off impairment loss on amount due from customers recorded in the previous year.

On a full-year basis, the group’s net loss shrank 97.5% to RM2.57 million from RM103.5 million in the previous year, despite revenue being down 52.1% to RM2.59 million from RM5.4 million.