KUALA LUMPUR: Ahmad Zaki Resources Bhd
(AZRB) reported a 58% decline in its net profit to RM3.73mil in the first quarter from RM9.13mil a year ago due to a decline in the engineering and consruction segment.
AZRB announced to Bursa Malaysia on Friday its revenue fell by 16.7% to RM253.27mil from RM304.13mil a year ago. Earnings per share were 0.62 sen compared with 1.72 sen.
“With the exception of the concession division, all other operating divisions of the group saw a reduction in revenues recorded for the period under review,” it said.
Pre-tax profit was RM3.46mil compared with RM12.61mil a year ago as a general slow-down in nearly all of the divisions which AZRB operates in reported lower performance.
AZRB said its engineering and construction division recorded a 9.3% decline in revenue to RM224.4mil due to slower construction progress from the division’s on-going projects in 2019.
Pre-tax profit fell by 44% to RM7.2mil from RM12.8mil mainly due to the narrowing of the average margin of projects in the division; as these were at their different stages of progress and completion.
Its concession division, which derives its income from the facilities management of the International Islamic University Malaysia (IIUM) Medical Centre in Kuantan, recorded slightly higher revenue of RM9.4milversus RM8.9mil a year ago.
“Despite the improvement in quarterly revenue against 2018, the division’s pre-tax profit was lower at RM9.4mil against RM13.6mil, attributable mainly to the recognition of full maintenance cost following the expiry of the defect liability period in May 2018,” it said.
Its oil and gas division reported a 12.4% decline in revenue to RM10.1mil from RM11.5mil due to the slightly lower volume of bunkering activities and vessel calls contributed to the revenue performance of 2019.
The division recorded a pre-tax loss of RM1.6mil due to the continued losses at Tok Bali Supply Base as the supply base has yet to reach its optimal level of operation.
AZRB's plantation revenue fell to RM7.2mil from RM32.2mi due to lower palm product sales, weaked selling prices of crude palm oil and palm kernel.
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