Cahya Mata Sarawak Berhad Records Profit
2Q pre-tax profit up 26% to RM68.81million
Kuching (Sarawak), Friday, 30 August 2013. Cahya Mata Sarawak Berhad (CMSB – 2852), the State’s leading infrastructure facilitator, is pleased to announce that it has reported revenue of RM338.33 million for its second quarter ended 30 June 2013 (2Q13), a 16% increase from the preceding year’s corresponding quarter’s revenue of RM292.20 million. The Group’s PBT of RM68.81 million is 26% higher than the PBT of RM54.81 million, reported in the first quarter ended 31 March 2013 (1Q13) although it declined marginally by 2% compared to PBT of 2Q12 at RM70.11 million.
Year-on-year, the Group’s PATNCI of RM68.74 million for the current six-month period (PE2013) is 12% lower than RM78.44 million for the previous year’s six-month period (PE2012). Earnings per share stood at 20.99 sen versus 23.80 sen from the corresponding six-month period of last year.
The higher profit in PE2012 was due mainly to the recognition of the profit for a land sale in Bandar Samariang. The Cement Division however recorded a 16% higher PBT of RM45.19 million in PE2013 over PE2012’s PBT mainly due to the turnaround of CMS Clinker since March 2013 following the successful re-commissioning of its upgraded clinker plant. The Construction Materials & Trading Division reported a strong PBT for PE2013 (RM24.63 million) which exceeded PE2012’s PBT by 129%. The Road Maintenance and Samalaju Development Divisions also reported higher revenues and PBT compared to the corresponding six-month period of last year. The Group has recorded lower shares of profit from its associates in PE2013 compared to PE2012 due to a loss recorded by K&N Kenanga Holdings Berhad in PE2013. However, the decline was partially mitigated by a higher profit registered by KKB Engineering Berhad in PE2013. OM Materials (Sarawak) Sdn Bhd, which has a ferro silicon and manganese alloy smelter under construction in Sarawak and has yet to commence operations, reported a marginal loss which arose from loss on foreign exchange.
Commenting on the results, Dato’ Richard Curtis, Group Managing Director of CMSB said, “We are very pleased with the 2Q13 figures as they are further testament to the Group’s sound business models, the efforts of our Board and all our staff and our ability to take advantage of opportunities afforded by Sarawak’s growing economy. Significant achievements have been recorded namely by the Cement, Construction Materials & Trading, Construction & Road Maintenance and the Samalaju Development Divisions which saw robust rises year-on-year in PBT by 16%, 129%, 13% and 61% respectively. The outlook for the rest of 2013 remains positive and the Group expects its financial performance to be good for the full 2013 year. The Group’s strong financial position will enable the Group to invest both in its core business divisions as well as in new business opportunities arising especially under the Sarawak Corridor for Renewable Energy (SCORE), which will lead to long term profits growth.
“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 SCORE and infrastructure required across the State, which are set to propel the State’s economy and GDP to new heights. CMSB’s 20% stake in the joint venture ferro silicon and manganese alloys smelter project with Australian listed OM Holdings Ltd, plus other investments in energy intensive industries being evaluated are poised to grow and drive up shareholder value. Our healthy balance sheet, local knowledge, experienced management team and synergised portfolio of Sarawak based businesses will further enable us to maximise our participation in the Sarawak growth story” said Dato’ Curtis.
Reflecting the Group’s strong performance, the Board of Directors has declared an interim dividend of five (5) sen less 25% tax per ordinary share in respect of this financial year.