Wah Seong FY19 profit slips to RM24.14m

KUALA LUMPUR: Wah Seong Corp Bhd’s net profit for the financial year ended Dec 31,2019 (FY 2019) declined to RM24.14mil from RM64.8mil a year ago.

Revenue depreciated to RM2.51bil from RM2.96bil.

In a filing with Bursa Malaysia yesterday, the integrated energy infrastructure group said net loss widened to RM30.59mil in the fourth quarter of 2019 (Q4) from RM9.98mil in the same quarter in 2018, on the back of lower revenue of RM429.25mil from RM706.37mil.

It said the oil and gas segment’s Q4 and FY 2019 external revenue were lower at RM168.7mil and RM1.5bil, respectively, compared with RM453mil and RM2bil, respectively, in the same period in 2018.

The recognition of RM34.7mil in impairment losses on leasehold buildings and plant and machinery and share of impairment losses on vessels from a RM18mil joint venture resulted in the decreases in Q4.

These, together with a reduction in revenue due to completion of a major project that started in late 2016, contributed to the decrease recorded in the FY 2019 results.

Meanwhile, both Q4 and FY 2019 industrial trading and services segment’s external revenue declined to RM99.2mil and RM426.1mil, respectively, versus RM111mil and RM481.7mil, respectively, in the corresponding period in 2018.

All business units in the division suffered a decline in revenue due to the general slowdown in the construction sector.

However, Wah Seong’s renewable energy segment’s external revenue for the Q4 and FY 2019 were better at RM112.6mil and RM399.6mil, respectively compared with RM100mil and RM335.8mil, respectively, previously.

The group’s current order book stood at RM929.6mil with RM576.7mil in the oil and gas segment, RM309.3mil in renewable energy, and RM43.6mil in industrial trading and services.

“The group is confident of securing some of these jobs which will have a positive contribution in FY 2020, ” Wah Seong added. — Bernama

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