Taliworks earnings fall on absence of disposal gain

PETALING JAYA: Taliworks Corp Bhd's net profit for the second quarter ended June 30, 2017 plunged to RM6 million from RM76.19 million a year ago in the absence of a RM64.526 million disposal gain.
Profit before tax was 47% lower at RM10.3 million, on provisions of RM10.9 million for payments due from Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) affected by the delay in the Selangor water restructuring exercise, higher amortisation cost of RM7.6 million and higher operating costs in both the water treatment operations.
Revenue rose 18.8% to RM91.28 million compared with RM76.83 million achieved a year ago, after the impact from the provision for discounting.
Taliworks is a pure-play infrastructure company engaged in water treatment, supply and distribution, highway and toll management, waste management and construction and engineering.
For the six months period, the group's net profit declined sixfold to RM12.68 million from RM76.96 million a year ago. Revenue rose 7% to RM162.63 million, higher than the RM152.05 million achieved in the previous corresponding period.
Taliworks executive director Datuk Ronnie Lim said the results of the second quarter of 2017 were within the management’s expectations.
"Looking ahead to the second half of the year, we are positive that we will be able to maintain our earnings momentum," he said in a statement.
Going forward, Taliworks will continue to tender more infrastructure projects to boost the construction segment’s order book. Concurrently, it is seeking new opportunities to pursue in sectors such as power, and will continue to focus on mature operational brownfield cash-generating investments.
“We remain committed with our clear and focused business strategy to continue to provide a recurring and stable source of cash flow to enhance our company’s growth and to support our company’s dividend policy,” Lim said.
Taliworks declared a second interim single-tier dividend of 2 sen per share on 1.21 billion ordinary shares, amounting to RM24.2 million, which will be paid on Sept 22, 2017.
Taliworks closed 0.68% lower at RM1.47 yesterday with 259,800 shares traded.