Puncak Niaga’s Q3 net profit drops 34%

PETALING JAYA: Puncak Niaga Holdings Bhd's net profit for the third quarter ended Sept 30, 2015 (Q3FY15) dropped 33.5% to RM40.09 million, compared with RM60.29 million in the previous corresponding quarter.
Revenue declined 76% to RM46.25 million, against RM193.2 million last year.
For the nine months period, the group's net profit fell 0.8% to RM165.3 million, from RM166.7 million a year ago, while revenue decreased 52% to RM175.2 million, from RM365 million previously.
In a filing with Bursa Malaysia yesterday, Puncak Niaga said the decrease in revenue in the fourth quarter and financial year-to-date was mainly due to lower revenue contribution from the oil and gas (O&G) segment as a result of the downturn in the O&G sector.
Commenting on the prospects, the group said despite the downturn in O&G sector, it hopes to secure projects for its transportation and installation operations of offshore facilities under the ongoing Pan Malaysia package B contract with Petroliam Nasional Bhd (Petronas) from 2014 to 2016.
On the construction sector, the group said it will continue to be involved in the construction of water-related and sewerage facilities.
Its 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 in Bunus, Kuala Lumpur.
The group said it is also currently involved in several ongoing construction tenders related to the water and environmental sectors in the country.
Going forward, Puncak Niaga said it is looking to continuously expand its operations in areas related to its core businesses and core competencies in water and wastewater, sewerage, environmental engineering and construction and O&G, both locally and abroad.
The group said it is also exploring opportunities in new business sectors including oil palm plantation and property development sector.
Puncak Niaga closed unchanged at RM2.85 yesterday, with some 700,400 shares changing hands.