KUALA LUMPUR: Cahya Mata Sarawak Bhd’s (CMS) net profit plunged 93.5% to RM9.9mil in the third quarter ended Sept 30 from RM154.4mil from the corresponding period a year ago.
Cahya Mata said the lower profit was mainly attributable by one-off gains in in preceding year’s corresponding period from the recognition of negative goodwill of RM62.47mil, reversal of impairment of RM37.69mil on OM Materials investment and loan, lower share of results of associates by RM28.28mil in PE2023 and the higher loss before tax recorded by the phosphates division as it moves to the commissioning phase.
Revenue, however, rose 8.4% to RM301.9mil from RM278.4mil previously mainly due to a contribution from oiltools division of RM50.56mil. Its earnings per share fell to 0.93 sen from 14.37 sen a year prior.
CMS’ net profit for the cumulative nine months ended Sept 30, was RM78.9mil against RM265.9mil for the same period a year ago.
Revenue for the period rose to RM868.1mil from RM702.2mil last year.
CMS said the lower pre-tax profit stemmed from the one-off gains from the recognition of negative goodwill of RM62.47mil arising from the acquisition of Oiltools group and reversal of impairment of RM37.69mil on OM Materials investment and loan in the preceding year’s corresponding period’s.
In addition, profit contributions from associates decreased by 66% to RM43.05 million from the preceding year’s corresponding period’s contribution of RM124.84mil.
The group no longer recognises profits from an associate which was disposed of in December 2022.
CMS' cash position remains healthy at RM524.49mil and its net assets per share stands at RM2.99 per share as at Sept 30.
The group said its performance for the first nine months has been within expectations, with the exception of phosphates where operation was deferred.
“We expect the remainder of the year to be similar to the performances of previous quarters.
“The board of directors continue to hold a positive view of the Sarawak economy, which augurs well for the group as our businesses are well placed to benefit from the expected developments,” CMS said in the notes accompanying its financial results.