Ekovest posts RM11.06mil Q3 net profit

PETALING JAYA: Ekovest Bhd’s net profit for its third quarter ended March 31, 2017 was flat at RM11.06mil compared with RM11.08mil in the previous corresponding period, while revenue in the third quarter rose to RM291.75mil from RM184.77mil a year earlier.

In a filing with Bursa Malaysia yesterday, the construction firm attributed its earnings to the commencement of preliminary and construction works for the Setiawangsa-Pantai Expressway (SPE).

“Higher sales recognition for the EkoCheras project coupled with advanced progress work have also contributed to higher revenue from the property development segment.”

Ekovest also said its net profit was affected by a one-off expense amounting to RM22.62mil on the recognition of the fair value adjustment pursuant to the granting of the employees’ share option scheme on March 9, 2017.

“The lower contribution from the preliminary and enabling work for SPE which has a better profit margin has also resulted in a lower profit before tax for the current quarter.”

For the nine months ended March 31, 2017, net profit increased to RM92.19mil from RM20.27mil in the previous corresponding period while revenue grew to RM770.26mil from RM502.51mil a year earlier.

On its prospects, Ekovest said its board expects the ongoing construction of the Duke phase-2 and SPE, toll revenue and the recognition of unbilled sales from property development activities to contribute positively to turnover and profitability in the current financial year.

“Barring any unforeseen circumstances, the board is confident that the group’s performance would be much better for the financial year ending June 30, 2017 compared to the previous financial year.”