Taliworks Q3 earnings fall 49% on lower contribution from construction and toll biz

PETALING JAYA: Infrastructure company Taliworks Corp Bhd posted a 49% drop in its earnings to RM9.95 million for the third quarter ended Sep 30, 2017, against RM19.5 million in the previous corresponding quarter.
Revenue for the quarter declined 11.3% to RM74.3 million compared with RM83.8 million in the same period last year, mainly due to lower contribution from the construction and toll business.
For the nine months period its net profit slumped 76.3% to RM22.6 million, from RM95.5 million a year ago, while revenue was slightly higher by 0.5% to RM236.9 million from RM235.8 million previously.
In a statement today, its executive director Datuk Ronnie Lim said the lower profit registered for the nine months period was mainly due to change in the amortisation policy of its toll highway division which led to a higher depreciation and amortisation charge of RM26.1 million in 2017, including unrealised/realised foreign exchange losses.
Taliworks noted that it registered a RM26.4 million earnings before interest, tax, depreciation and amortisation (Ebitda) after taking into account the impact from the net provision for discounting of receivables of RM9.6 million as a result of the delay in the acquisition of Splash by Air Selangor.
The acquisition of Splash has since been extended to July 4, 2018, following the expiration of the deadline on Oct 7, 2017.
Going forward, Lim said the group is committed to increase its order book by tendering for more infrastructure projects.
The group has declared a third interim single-tier dividend of 2 sen per share on 1.21 billion ordinary shares, amounting to approximately RM24.2 million which shall be paid on Jan 10, 2018. To date, it has declared a total dividend of 6 sen amounting to RM72.6 million in respect of the financial year ending Dec 31, 2017.
Barring any unforeseen circumstances, the Board expects to be able to continue to pay a dividend of 2 sen per share for the next quarter and also for the first quarter of 2018.
“Further dividend declarations thereafter will be reviewed based on the outcome of the Selangor state water consolidation exercise which is expected to be completed by July 4, 2018,” it added.
The group slipped 3 sen or 2.73% to RM1.07 with 530,300 shares done.