Ahmad Zaki slips into the red in 4th quarter

PETALING JAYA: Ahmad Zaki Resources Bhd fell into the red in the fourth quarter ended Dec 31, 2017 after reporting a net loss of RM3.77 million against a net profit of RM8.45 million a year ago, due to additional tax from the Inland Revenue Board of RM12.2 million.
Its engineering and construction division received a notice of additional assessment from the tax authority for the years 2011 to 2016.
Meanwhile, for the quarter under review, revenue halved to RM178.26 million from RM356.99 million in the preceding year’s corresponding quarter due to lower contribution from its engineering and construction division.
The group said the oil and gas sector has shown signs of improvement despite continued challenges, as the price of crude oil has seen a steady increase during the recent months and sustained above US$60 per barrel.
“From being only a pure bunkering operator out of Kemaman Supply Base, the division’s prospects are positive with the inclusion of Tok Bali Supply Base (TBSB) as a full fledged supply base in East Coast of Peninsular Malaysia during the year. Going forward, the group intends to continue to invest and install more facilities to better accommodate current customers as well as to attract more customers to set up their base of operations at TBSB,” its board of directors said.
The group said it is actively tendering for more projects to replenish its engineering and construction order book which stands at RM3.8 billion, which will keep it busy for the next three to four years.
The group also expects its ongoing concession for maintenance and facilities management at IIUM Medical Centre in Pahang, plantation and property divisions to continue to contribute positively to the group.
The group saw a slight increase of 3.76% in its full-year net profit of RM28.23 million against the RM27.20 million recorded in the previous year due to better construction project mix, IIUM Hospital, concession income and lower losses from the plantation division.
Revenue for the period fell to RM960.68 million from RM1.2 billion in the previous year, due to slower stages of completion for key construction projects, which was mitigated by increased concession and plantation division revenue.