PETALING JAYA: Puncak Niaga Holdings Bhd’s net losses widened in the second quarter ended June 30, to RM30.38 million from RM18.26 million a year ago, due to higher operating cost.
This was despite contributions from its construction and water and wastewater segments, driving revenue to more than double in the quarter under review to RM29.63 million, from RM10.36 million in the preceding year’s corresponding quarter.
“The group is continuously looking to expand its operations in areas related to its core businesses and competencies in the water and wastewater, sewerage, environmental engineering and construction, both locally and abroad as well as exploring opportunities in new business sectors such as oil palm plantation and property development,’ its board of directors announced in a Bursa Malaysia filing.
It had on July 3, ventured into the oil palm segment through the acquisition of oil palm company Danum Sinar Sdn Bhd. The board is of view the acquisition will contribute positively to its long term earnings while also threading cautiously in managing the various challenges in the oil palm plantation sector such as fluctuations in crude palm oil prices, labour shortage and weather conditions.
However, it displayed a cautious outlook in the oil and gas sector, where it has continued to mitigate the identified risks.
“Nevertheless, the group remains open to future possibilities and opportunities which may be worthwhile to be considered should there be a rebound in the crude oil price,” the board said.
For the first six months of the current financial year, Puncak Niaga’s net losses widened to RM73.10 million from RM63.80 million last year.
Revenue increased by 118% to RM 49.94 million from RM23.45 million.
Puncak Niaga’s shares were untraded at 77.5 sen.
Source: The Sun Daily