PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) posted a 5.6% jump in pre-tax profit for the first nine months of this year to RM115.76mil if the RM44.4mil gains from one-time disposals recorded in last year’s corresponding period are excluded.
In a statement yesterday, the property and construction group said it also recorded an encouraging 75.5% jump in revenue to RM2.42bil for the January-September period.
Last year’s disposal gains of RM44.4mil were derived from the sale of Sooka Sentral in Kuala Lumpur and the sale of its stake in the River of Life project (40% equity interest in Ekovest-MRCB JV Sdn Bhd and 60% in Ekovest-MRCB Construction Sdn Bhd).
MRCB said the higher operational profit for the nine-month period was mainly thanks to a more effective cost management of the group’s working capital.
The engineering, construction and environment division, which contributed 66.8% of the group’s revenue during the first nine months of 2017, was also the best performer in terms of revenue and profit growth.
Operating profit from the division rose 365.7% to RM46.5mil during the financial period, helped by an improvement in operating margins, which increased year-on-year from 2.1% to 2.9%. Revenue, meanwhile, grew by 236.7% to RM1.61bil.
The property development and investment division – the second-biggest revenue contributor –recorded a 9.6% drop in revenue to RM660.7mil.
“This was largely due to the completion of Sentral Residences in KL Sentral and our Easton Burwood development in Melbourne as well as our new projects still being in the early phase of construction,” MRCB said.
“Consequently, operating profit declined 38.8% to RM112.5mil, excluding gains of RM44.4mil arising from the disposal of non-core assets, in comparison to the corresponding financial period in 2016.”
The main contributors to the division’s revenue and operating profit were the ongoing 9 Seputeh mixed development in Jalan Klang Lama, the en-bloc office towers sold at PJ Sentral Garden City and Menara MRCB in Putrajaya.
Recurring income from investment properties contributed RM5.3mil, while MRCB-Quill REIT Bhd and MRCB Quill Management Sdn Bhd contributed RM14.3mil.
MRCB said the property development division had achieved good sales so far this year, already hitting its 2017 sales target of RM1.2bil. This was largely from its Sentral Suites and 1060 Carnegie developments.
Group managing director Tan Sri Mohamad Salim Fateh Din said: “The recent completion of our RM1.732bil rights issue has significantly strengthened our balance sheet, and we are well positioned to fund future growth.”
For the third quarter to Sept 30, MRCB recorded a 15.1% year-on-year drop in pre-tax profit to RM52.32mil, while revenue more than doubled to RM1.13bil.