KUCHING: Cahya Mata Sarawak Bhd (CMS) reported a total revenue of RM670.57 million for 1H17, a 10 per cent decrease to the preceding year’s corresponding period’s (1H16) revenue of RM745.72 million. This was mainly due to lower sales volume in the Construction Materials & Trading and Cement Divisions.
Furthermore, the Construction & Road Maintenance Division also reported lower revenue due to reduced federal road maintenance work and due to the completion of major projects in 2016.
The Group’s pre-tax profit (PBT) of RM135.44 million reported for 1H17, however, increased by 106 per cent from 1H16’s PBT of RM65.67 million.
The profit after tax and non-controlling interests (PATNCI) also increased to RM87.39 million in 1H17 from RM8.95 million in 1H16. Earnings per share stood at 8.13 sen versus 0.83 sen from the corresponding six-month period of last year.
Commenting on the results, CMS group managing director Datuk Richard Curtis said the first six-months of 2017 has been an important phase in terms of meeting performance against targets, despite the challenging market and operational conditions.
“The macro factors include low commodity selling prices and generally the sluggish regional private and public sectors resulting in reduced demand for construction materials and related services,” he said in a statement yesterday.
“Despite these challenges, the group recorded significant achievements namely by its cement, construction and road maintenance, construction materials and trading and property development divisions.
“Overall, the results for the first six-months of this year are viewed positively as they provide reassurance that the Group is on track towards achieving a very much-improved performance for its FY2017 financial results as against FY2016.”
The main contributors towards the earnings for 1H17 were the cement, construction and road maintenance, construction materials and trading and the property development divisions.
The cement division reported a PBT of RM47.04 million for 1H17, exceeding 1H16’s PBT of RM41.69 million by 13 per cent attributable to lower handling costs, cheaper imported clinker and lower clinker production cost due to stable production and lower coal prices.
“Moreover, with the commissioning of the integrated cement plant in Mambong, the group’s cement sales are no longer required to be supported by imports,” CMS said in the statement. Its construction and road maintenance division recorded a PBT of RM36.11 million in 1H17 – a six per cent decrease in comparison to 1H16’s PBT of RM38.43 million – as a result of reduction in road length maintained due to the construction of the Proposed Pan Borneo Highway project.
Meanwhile, the construction materials and trading division reported a PBT of RM29.50 million for 1H17, 39 per centlower than the PBT of RM48.22 million reported during 1H16.
This was mainly attributable to lower sales due to slower implementation of Government projects during the first half of the year. Meanwhile, CMS’ property development division reported a PBT of RM26.10 million during 1H17, an increase by 271 per cent in comparison to 1H16’s PBT of RM7.03 million. This was mainly due to the revenue recognition of the Rivervale housing project and, additionally, improved sales of residential properties and the rental income from a hypermarket in Bandar Samariang.
The group also recorded a higher share of profit of RM20.55 million in 1H17 from the share of results of its joint-ventures in comparison to 1H16’s profit contribution of RM2.34 million. The increase was mainly attributable to the excellent performances by CMS Opus Private Equity Sdn Bhd and two private equity funds. Furthermore, CMSB recorded lower losses of RM7.48 million in 1H17 from the share of results of its associates, an 85 per cent improvement in comparison to 1H16’s losses of RM48.90 million.
This is largely due to the group’s 25 per cent associate, OM Materials (Sarawak) Sdn Bhd’s improved performance. Its performance levels are expected to continue to improve as the plant is ramping up towards full production and the market sectors are beginning to observe demand growth and price improvements.
Source: Borneo Post Online