KUALA LUMPUR: Sime Darby Plantation, the world’s biggest oil palm planter by land holdings, is considering exiting its palm and rubber operations in the West African nation of Liberia, industry sources said. The potential move comes as the Malaysian company’s return on investment in Liberia has been lower than expected due to disappointing planting activity […]
KUALA LUMPUR, Feb 22 — Axiata Digital Services Sdn Bhd, a subsidiary of Axiata Group Bhd, expects its financial services business to turn profitable by 2021. Chief executive officer Mohd Khairil Abdullah said the projection is based on the growing…
KUALA LUMPUR, Feb 22 — Tune Protect Group Bhd’s net profit rose 6.5 per cent to RM49.31 million in the financial year ended Dec 31, 2018 (FY18) largely due to a RM39.73 million drop in net claims incurred. The digital insurer achieved the…
KUALA LUMPUR, Feb 22 — Axiata Group Bhd is allocating RM6.8 billion in capital expenditure (capex), mainly to modernise the group’s network and towers expansion. President and group chief executive officer Tan Sri Jamaludin Ibrahim said about…
PETALING JAYA: Chemical Company of Malaysia Bhd’s (CCM) net profit for the fourth quarter ended Dec 31, 2018 jumped more than seven times to RM8.63 million from RM1.19 million a year ago due to savings in finance cost of RM2.6 million pursuant to the group’s de-gearing exercise.
In a filing with Bursa Malaysia, CCM said the preceding year’s profit also included the voluntary separation scheme cost amounting to RM5.5 million. The group had also recorded an income tax expense of RM13.93 million a year ago.
Revenue for the quarter fell 8.03% to RM100.46 million from RM109.23 million a year ago due to lower revenue from the chemicals division, which fell 9.3% due to lower average selling prices of its chlor-alkali products on the back of fluctuation in chemical commodity prices.
For the financial year ended Dec 31, 2018, net profit fell marginally to RM25.71 million from RM25.92 million a year ago while revenue rose 6.81% to RM395.94 million from RM370.71 million a year ago.
The group recommended a final single tier dividend of 2 sen per share for FY18, to be paid on June 14, 2019 subject to shareholders’ approval.
In FY18, the group completed two major divestments of its non-core assets which raised a total proceed of RM249.2 million, that was used to pare down its borrowing and strengthened its gearing position from 1.67 times in 2017 to 0.60 times as at end of 2018.
The continuous de-gearing exercise has also contributed to a reduction in finance cost by 18% compared with 2017. The group expects to pursue its expansion and growth strategies now with a stronger financial position.
In line with its strategic plan, the group will focus its efforts on expanding its two core businesses namely chemicals and polymers divisions, both of which will pursue new opportunities to increase market share.
KUALA LUMPUR, Feb 22 — Axiata Group Bhd swung to a net loss of RM5.03 billion in the 2018 financial year (FY18) from a net profit of RM909.48 million in the previous year due to dilution of its investment in India and asset write-off that ran into…
PETALING JAYA: Axiata Group Bhd suffered a net loss of RM1.66 billion in the fourth quarter ended Dec 31, 2018 compared with a net profit of RM24.73 million a year ago due to one-off asset written-off/accelerated depreciation of obsolete assets and equipment decommissioned from network modernisation projects.
In a filing with Bursa Malaysia, the group said revenue for the quarter rose marginally to RM6.27 billion from RM6.26 billion a year ago. At constant currency of Q4 2017, revenue grew 5.6% attributed to operating companies in Malaysia, Sri Lanka and Cambodia.
In Malaysia, revenue grew 11.7% to RM1.92 billion underpinned by higher device revenue from one-off “100,000 free smartphone” special campaign for selected long-term loyal customers during the quarter.
Consequently, earnings before interest, taxation, depreciation and amortisation (Ebitda) fell 21.7% to RM466.2 million. The lower Ebitda combined with one-off assets written off/accelerated depreciation amounting to RM358.4 million resulted in a net loss of RM216.7 million compared with a net profit of RM264.5 million a year ago.
Excluding the one-off adjustment, the Malaysian operations recorded a net profit of RM141.7 million during the quarter.
In Sri Lanka, total revenue was stable at RM678.3 million. At constant currency of Q4 2017, revenue grew 15% on the back of strong data revenue underpinned by higher 3G data usage while Ebitda grew 10.2% to RM273.4 million.
At constant currency of Q4 2017, Ebitda grew 25.8% but higher depreciation and foreign exchange translation loss resulted in a net loss of RM900,000 compared with a net profit of RM86.3 million a year ago.
In Cambodia, revenue and Ebitda grew 16.3% and 15.8% respectively due to strong growth of data revenue despite the price war and adverse regulatory impact. At constant currency, revenue and Ebitda grew 15.9% and 15% respectively. Net profit stood at a record RM75.3 million.
For the financial year ended Dec 31, 2018 (FY18), the group reported a net loss of RM5.03 billion compared with a net profit of RM909.48 million a year ago while revenue fell 2.12% to RM23.89 billion from RM24.40 billion a year ago.
The group declared a tax exempt dividend under single tier system of 4.5 sen per share in respect of FY18. Full year dividend declared for FY18 is 9.5 sen.
The Dividend Reinvestment Scheme will apply to the dividend, whereby shareholders will have the option to elect to reinvest the whole or part of the dividend into new Axiata shares.
Axiata president and group CEO Tan Sri Jamaludin Ibrahim said its results at a glance can be alarming and misconstrued as it is almost all due to non-cash items that are purely accounting treatments as opposed to some fundamental performance but the underlying performance is very strong.
“To be specific, due to the massive accounting adjustments especially the reclassification of our Indian asset into the balance sheet, Idea performance will no longer drag our profitability. In fact, there are now more upsides given our belief in the long-term future of the merged company,” he said in a statement.
“Additionally, the 2G and other legacy network write-offs are expected to result in D&A savings of around RM150 million per year, hence, correspondingly improve our profitability,” he added.
He said the group is confident of a promising 2019 given the huge tail wind from the momentum from the operational successes across the group and the strong balance sheet from the M1 sale of RM1.65 billion as well as its RM5.1 billion cash balance.
SYDNEY, Feb 22 — As property prices rocketed toward the heady peak of Sydney's real-estate boom in 2017, the bulldozers came to Epping. Eucalypt-lined streets of red-brick bungalows in the middle-class suburb were snapped up at hefty premiums by…
PETALING JAYA: AirAsia X Bhd suffered a net loss of RM99.27 million in the fourth quarter ended Dec 31, 2018 compared with a net profit of RM84.42 million a year ago due to higher fuel prices.
In a filing with Bursa Malaysia, the airline reported an increase in average fuel price to US$89 per barrel during the quarter from US$69 per barrel a year ago, which resulted in a lower net operating profit of RM27.4 million from RM120 million a year ago.
In addition, the group provided an impairment on amount due from joint venture amounting to RM24 million during the quarter under review.
During the quarter, the group reported a 1% improvement in cost per available seat kilometre (CASK) to 12.27 sen while CASK ex-fuel improved by 16% from 8.22 sen to 6.94 sen a year ago, due to enhanced cost management.
Revenue for the quarter fell 5.93% to RM1.15 billion from RM1.22 billion a year ago.
For the financial year ended Dec 31, 2018 (FY18), the group also swung into the red registering a net loss of RM312.7 million compared with a net profit of RM98.89 million a year ago while revenue fell marginally to RM4.54 billion from RM4.56 million a year ago.
AirAsia X said its current forward booking trend and average fares for the first quarter of 2019 are within expectation and prospects are anticipated to remain encouraging.
The airline will be adding up to five aircraft through operating leases this year via AirAsia X Thailand while AirAsia X Malaysia will remain with 24 aircraft.
AirAsia X Malaysia will focus on maximising aircraft utilisation of its current fleet and leverage on the group’s strategy in new route launches as well as increasing frequencies of core routes.
The stock rose 1.75% to close at 29 sen today with 14.89 million shares traded.