PETALING JAYA: MALAYSIAN RESOURCES CORP Bhd (MRCB) has recorded a net profit of RM11.06mil for its second quarter ended June 30 compared with RM33.45mil in the previous corresponding period, while revenue came in at RM240.97mil compared with RM405.25mil before.
In a statement yesterday, MRCB said revenue and profits were impacted by the group’s newer property development projects still being at the early stage of construction, where revenue and profit recognition is minimal, and income from the LRT3 project being deferred as a result of being remodelled from a project delivery partner to a fixed price turnkey project.
For the six-month period, the property, engineering and construction company’s net profit stood at RM15.19mil compared with RM54.98mil in the previous corresponding period, while revenue stood at RM475.02mil compared with RM832.85mil a year earlier.
The company said its property development and investment division recorded a revenue of RM156.4mil and operating profit of RM47mil in the first half of 2019.
“The lower revenue and operating profits were due to no revenue being recognised from the sale of completed unsold units which had yet to reach sales and purchase completion, as well as the group’s key high-rise residential development projects currently being in the early phase of construction.
“The division sold RM244.2mil worth of properties during the period, lifting its unbilled property sales to RM1.8bil from RM1.6bil at the end of the first quarter 2019.”
MRCB said these unbilled sales would be recognised as revenue progressively until the construction completion of the projects, and after the sales and purchase completion for all completed units sold.
“The group’s investment holding in MRCB-QUILL REIT also contributed an income of RM8.6mil during the period versus RM9.5mil in the corresponding period last year.”
Meanwhile, the engineering, construction and environment division recorded a revenue of RM283.5mil and an operating profit of RM1.5mil in the first half of 2019.
“Revenue was mainly contributed by the MRT Line 2 Package V210, the Damansara-Shah Alam Elevated Highway Package CB2, the TNB HQ Campus, the Sungai Besi-Ulu Kelang Elevated Expressway Package CA2 and Larkin Indoor Stadium.
“The lower operating profits were due to the lower revenue earned during the period, compounded by the prudent expensing of certain costs while waiting for the completion of the final accounts of completed projects and the results of legal proceedings relating to certain projects, ” said MRCB.
Commenting on the results, group managing director Imran Salim (pic) said the group’s ability to book revenue and profits hinged on construction progress.
“Although construction is progressing well at our Sentral Suites and Carnegie development in Melbourne, these key projects will not begin contributing significantly to profits until next year, when we also expect the pace of revenue and profit recognition from the LRT3 project to increase, ” he said in the same statement.
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