Eita Q3 earnings more than double

PETALING JAYA: Eita Resources Bhd, which bagged a RM67.22 million job today, saw net profit for the third quarter ended June 30 more than double on higher revenue, unrealised foreign exchange gains and reversal of provisions.
Eita’s 60%-owned Transsystem Continental Sdn Bhd (TSC) was awarded a RM67.22 million contract by Sarawak Energy Bhd (SEB) subsidiary Syarikat Sesco Bhd is to carry out the Kemena 132kV substation & Kemena 275kV extension project.
Meanwhile, Eita saw its net profit for the third quarter ended June 30, 2018 double to RM3.65 million from RM1.81 million a year ago, in tandem with the higher revenue, unrealised foreign exchange gain on the fair value valuation of the forward exchange contracts and reversal of provision for allowance for doubtful debts.
Its revenue rose 11% to RM67.84 million compared with RM60.97 million in the previous corresponding quarter, mainly due to higher revenue from the services segment.
For the nine months period, Eita’s net profit fell 19% to RM14.27 million from RM17.72 million a year ago in tandem with the lower revenue, higher inventories written down to net realisable value in the marketing and distribution segment and foreign exchange loss.
Its revenue dropped 5% to RM199.40 million compared with RM210.52 million in the previous year’s corresponding period mainly due to lower revenue from manufacturing and marketing and distribution segments.
“The general business environment remains uncertain. Nevertheless, with the current order book and ongoing projects in hand and barring any unforeseen circumstances, the board of directors expects the group to achieve satisfactory results for this reporting financial year,” Eita said.