Cahya Mata Sarawak Berhad Posts Record Profit

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4Q pre-tax profit up 49% to RM66.25 million

Kuching (Sarawak), Wednesday, 27 February 2013.  Cahya Mata Sarawak Berhad (CMSB – 2852), the State’s leading infrastructure facilitator, continues with its record performance by  registering RM230.79 million in pre-tax profit (PBT) for the year ended 31 December 2012.

This represents a 29% increase from the RM178.72 million recorded in the corresponding year to December 2011.  Earnings Per Share (EPS) was also higher at RM0.42.  Revenue grew to RM1.20 billion, 19% higher compared to the year ended December 2011. Following the payment of an interim dividend of 5 sen, a final dividend of 12 sen per share less 25% taxation has been proposed, subject to shareholders’ approval, for the financial year ended 31 December 2012 bringing the total dividend payout to 17 sen (less 25% taxation). This payout is in line with CMSB’s dividend policy of paying out a minimum of 30% of its PATNCI as dividends.

For the final quarter of last year, CMSB achieved an improved revenue of RM392.44 million, up 36% compared to RM288.28 million in the previous quarter. PBT stood at RM66.26 million, representing an increase of 49% compared to RM44.52 million registered in the third quarter of 2012. The increase in PBT was attributable to higher earnings streams from its Construction & Road Maintenance and Construction Materials & Trading Divisions.

Dato’ Richard Curtis, Group Managing Director of CMSB said, “The 19% improvement in CMSB’s 2012 revenue was largely due to the increase in revenue by the Cement Division followed by the Construction Materials & Trading, the Construction & Road Maintenance, and the Samalaju Development Divisions.  For the first time, the Construction & Road Maintenance Division was the largest contributor to the Group’s PBT registering a 36% jump in PBT to RM80.69 million (including the share of profit in jointly controlled entities) for the financial year ended 31 December 2012 from RM59.30 million recorded in the corresponding year (excluding the gain on acquisition of two subsidiaries). This was mainly due to the higher road length being maintained and to an upward contractual revision in state road routine maintenance rates.  The Construction Materials & Trading Division’s PBT soared by 62%, largely driven by Jabatan Kerja Raya (JKR) sales through the state government special funding.”

“We are pleased with the progress made by all our core business divisions and remain confident of their sustainable growth over the long term. Going forward, CMSB’s strong financial position is enabling it to invest in the unparalleled investment opportunities arising from energy intensive industries locating themselves in the Sarawak Corridor of Renewable Energy (SCORE), the first such investment being CMSB’s 20% stake in the joint venture ferro silicon smelter with Australian listed, OM Holdings Ltd. These investments are expected to create new platforms to accelerate CMSB’s growth and to increase shareholder value” added Dato’ Curtis.

CMSB is on track to be the best proxy investment for Sarawak’s accelerating economic potential, driven by the State’s plan to develop long term, hydro energy intensive industries under the Sarawak Corridor for Renewable Energy (SCORE) and infrastructure required across the State.