WZ Satu posts higher earnings in 1Q

Tan Sri Mohamad Norza Zakaria

KUALA LUMPUR: WZ Satu Bhd’s net profit for its first quarter ended March jumped 94.1% to RM2.11mil from RM1.09mil in the corresponding quarter last year.

The better profit was mainly due to stronger performance from the civil engineering and construction (CEC) segment.

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Revenue, however, dipped 32.8% to RM45.71mil in the first quarter from RM68.04mil a year earlier, due to lower sales in the oil and gas, CEC and manufacturing segments.

As at March 31, WZ Satu’s cash and bank balances stood at RM87.11mil, strengthening from RM34.4mil posted a year ago.

WZ Satu has an order book of RM539mil that will keep it busy in the immediate financial years.

“However, we shall continue to be on our toes. The group is continuing with its cost optimisation exercise to enhance its operational efficiency and to align cost structure in tune with the level of operations and sustain productivity,” executive chairman and president Tan Sri Mohamad Norza Zakaria said in a statement.

“We are actively tendering for projects as we aim to replenish our order book and increase profitability sustainably for shareholders,” he added.

Last month, WZ Satu announced that it is venturing into the moneylending business, with Norza’s proposed injection of his second private company, Citaglobal Hospitality Sdn Bhd into WZ Satu for RM1.5mil to enhance its ecosystem to complement its diversification into property development.