CMSB registers RM295.27mil in pre-tax profit

KUCHING: Cahya Mata Sarawak Berhad (CMSB), the state’s leading infrastructure facilitator, continues with its record performance by registering RM295.27mil in pre-tax profit for the financial year ended Dec 31, 2013 (FY2013), a 30% increase from the corresponding year’s (FY2012) pre-tax profit of RM226.91mil.

The pre-tax profit reported for the fourth quarter ended Dec 31, 2013 (4Q13) remained at RM109.12mil, a 75% increase from the preceding year’s corresponding quarter’s (4Q12) pre-tax profit of RM62.37mil and also the third quarter ended Sept 30, 2013 (2Q13) pre-tax profit of RM62.53mil.

Year-on-year, the group’s profit after tax and non-controlling interests (PATNCI) in FY2013 of RM175.45mil is 29% higher than the corresponding year’s (FY2012) PATNCI of RM135.74mil.

Earnings per share stood at 52.67 sen compared to 41.39 sen from 2012.

Following the payment of an interim dividend of 5 sen per share, less 25% taxation, a final dividend of 12 sen per share tax exempt (single-tier) has been proposed for FY2013, subjected to shareholders’ approval. This payout is in line with CMSB’s policy of paying out a minimum of 30% of its PATNCI as dividends.

Increase in pre-tax profit for FY2013 was attributable to higher earnings streams from its Cement Division which recorded 46% higher pre-tax profit of RM96.66mil over FY2012’s pre-tax profit of RM66.37mil, mainly due to the turnaround of CMS Clinker since March 2013 following the successful re-commissioning of its upgraded clinker plant.

The Construction Materials and Trading Division reported higher pre-tax profit of RM55.08mil for FY2013, which exceeded FY2012’s pre-tax profit (RM40.66mil) by 35% reflecting on continued government infrastructure spending and the division securing additional private sector projects.

The Construction and Road Maintenance Division reported a pre-tax profit of RM95.24mil in FY2013, it shows an increase of 18% over FY2012’s pre-tax profit of RM80.69mil due to more works undertaken and longer road lengths maintained.

The Property Development Division also reported higher revenue and pre-tax profit as compared to the corresponding 12-month period of 2013, due to strategic land sale undertaken to help catalyse development in its Bandar Samariang township.

The Samalaju Division recorded a 5% higher pre-tax profit of RM26.72mil over FY2012’s pre-tax profit of RM25.33mil.

“CMSB’s success in achieving four years of record revenue and profits growth in a challenging business environment is credited to both our business model and our board and staff for their vision and hard work.”

“For this financial year, significant achievements have been recorded amongst all the core divisions namely the Cement, Construction Materials & Trading, Construction & Road Maintenance, Property Deve–lopment and Samalaju Development Divisions, which saw robust rises year-on-year in pre-tax profit by 46%, 35%, 18%, 28% and 5% respectively,” said CMSB group managing director Datuk Richard Curtis.

“CMSB is clearly one of the best proxy listed investments for Sarawak’s accelerating economic growth. This is driven firstly by the state’s plan to promote energy intensive industries under Sarawak Corridor for Renewable Energy (SCORE) and secondly from the infrastructure required across the state.

Curtis said the two drivers are set to propel the state’s economy and GDP to new heights.

CMSB’s 20% stake in the joint venture ferro silicon and manganese alloys smelter project with Australian listed OM Holdings Ltd and 40% stake in an integrated Phosphate Products complex with Malaysian Phosphate Additives Sdn Bhd and Arif Enigma Sdn Bhd, plus other investments in energy intensive industries being evaluated are poised to significantly drive up shareholder value.

“Our prudent financial policies, healthy balance sheet, professional management team and synergised portfolio of Sarawak based businesses allows us to maximise our participation in the Sarawak growth story and to position ourselves to ensure long-term sustainable growth,” said Curtis.

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