KUALA LUMPUR (Aug 23): WCE Holdings Bhd registered a narrower net loss of RM14.13 million for the first quarter ended June 30, 2022 (1QFY23) from RM27.8 million a year earlier, amid lower interest expenses and higher share of profit of associates.

Interest expenses for the quarter amounted to RM39.5 million compared with RM41.7 million in the same period last year.

Share of profit of associates of RM12.6 million in 1QFY23 was also higher than the RM5 million recorded for 1QFY22 when construction work was disrupted due to the Enhanced Movement Control Order.

WCE's loss per share for the quarter was reduced to 0.47 sen from 1.43 sen in the prior year, the group said in a filing with Bursa Malaysia.

Revenue, in contrast, tumbled 42.09% to RM105.21 million from RM181.68 million, mainly due to lower IC Interpretation 12 construction revenue for the WCE project of RM98 million compared with RM175.5 million seen in the preceding year's quarter.

Going forward, WCE said its toll operations are expected to incur losses in the early years due to the cessation of capitalisation of interest expenses for completed sections and the non-cash expenditure in respect of the amortisation of infrastructure development expenditure.

Nevertheless, the commencement of toll operations of the West Coast Expressway is expected to improve the future financial performance of the group in terms of cash flow, it said.

The property market is also expected to remain challenging amid issues of price affordability, the overhang of high priced properties, rising costs of living, tight financing and economic impact of Covid-19 continuing to have a dampening effect. "Nonetheless, Bandar Rimbayu is expected to maintain its performance for the coming financial year on the back of the unbilled sales and satisfactory response from new launches."

On its construction division, WCE said the mixed development project in Kota Seri Langat, which includes construction of a bridge, main drainage, water pipes as well as associated works for a total consideration of RM126.8 million, is expected to contribute positively towards its future earnings.

WCE's share price, which has fallen 20.31% year-to-date, closed unchanged at 25.5 sen on Tuesday (Aug 23), valuing the group at RM761.87 million.