Puncak Niaga Q1 net profit up 42% from O&G segment

PETALING JAYA: Puncak Niaga Holdings Bhd, which agreed to extend its agreement to sell its water assets to Selangor government up till June 11, 2015, saw its first quarter ended March 31, 2015 net profit increase by 42% to RM65.83 million from RM46.49 million a year ago, mainly due to higher revenue contribution from the oil & gas and construction segments.
Revenue jumped 504% to RM63.47 million compared with RM10.51 million.
On is prospects, Puncak Niaga said the group remains hopeful that the proposed disposals can be completed in 2015 as part of the government's efforts to restructure the water services sector in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya.
It said the group will continue to be involved in the construction of water-related facilities such as water treatment plants (WTP) and pipelines in addition to the sewerage and solid waste sectors.
The group's current major projects include the capacity upgrading of the Bayong WTP in Sarikei, Sarawak; the supply, jointing and laying of pipelines and the construction of three water reservoirs and booster stations in Pakan, Sarawak; and the construction of new sewer pipe network and pumping stations including the rationalisation of the existing sewerage infrastructure in Bunus, Kuala Lumpur.
The group is also currently involved in several ongoing construction tenders related to the water and environmental sectors throughout Malaysia.
On the oil and gas sector, the group will focus on its transportation and installation operations of offshore facilities via the ongoing Pan Malaysia Package B contract secured with Petronas from 2014 to 2016 and will also intensify its effort to secure more oil and gas projects.
"Going forward, the group is looking to continuously expand its operations in areas related to its core businesses, both locally and abroad as well as exploring opportunities in new business sectors such as oil palm plantation sector."