UEM Edgenta declares higher dividend on four-fold increase in net profit

  • Business
  • Wednesday, 21 Feb 2018

Shares in UEM Edgenta closed one sen higher to RM2.85 yesterday.

PETALING JAYA: UEM Edgenta Bhd has declared a single-tier special dividend of 18 sen per share and a single-tier second interim dividend of five sen per share in respect of its financial year ended Dec 31, 2017 (FY17).

Including its single-tier first interim dividend of eight sen per share, the integrated facilities manager and engineering contractor services provider’s total dividend payout in FY17 stands at 31 sen per share compared to seven sen in FY16.

The payout in FY17 also translates to a dividend yield of 13.2%.

The special dividend is payable on April 18, while the second interim dividend is payable on May 17.

UEM Edgenta said yesterday it had registered a four-fold increase in net profit to RM418.19mil in FY17 compared to the previous financial year.

The rise in net profit was mainly attributed to the completed disposal of the company’s 61.2% stake in Opus International Consultants Ltd (OIC) in early December 2017.

UEM Edgenta made a RM274.91mil gain from the disposal of its unit.

Revenue for FY17, meanwhile, grew 34.3% to RM2.12bil as compared to the previous financial year, driven by the healthcare services division, mainly due to contribution from its new subsidiary Asia Integrated Facility Solutions Pte Ltd and concessions.

Meanwhile, the infrastructure division saw an increase in revenue of RM80.6mil for the year, from higher civil and pavement works for expressways, projects in Indonesia and MRT2.

However, this was offset by a lower contribution from environment material testing operations and the completion of lane widening works and works on expressways in Penang.

In a Bursa Malaysia filing, UEM Edgenta said it would continue to focus on operational excellence initiatives to drive better margins and profitability.

“The company entered 2018 on a strong financial footing with a healthy balance sheet and lower gearing, contributed by the disposal of OIC.

“It is now aligned and focused on providing three core offerings, namely consultancy, services and solutions to three key sectors – healthcare, infrastructure and real estate.

“Coupled with the healthy economic outlook for Malaysia, the board of directors is optimistic to achieve positive financial performance in 2018,” it said.

UEM Edgenta closed unchanged at RM2.34 yesterday.

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