Puncak Niaga net losses narrow slighly in Q4

PETALING JAYA: Puncak Niaga Holdings Bhd made a net loss of RM92.763 million for the fourth quarter ended Dec 31, 2016 on lower impairment losses on assets and recognition of fair value gain on investment properties.
This was a slightly better performance than the RM99.725 million net loss it made for the same quarter in the preceding year. Net losses for the quarter would have narrowed further if not for a RM25.112 million under provision in income tax from the previous year.
Revenue was 49% higher at RM20 million for the quarter compared with RM13.39 million for the same quarter in the preceding year, due to higher contribution from the construction sector.
Net loss for the year widened to RM258.942 million, compared with a net profit of RM65.576 million for the financial year 2015.
This was on a 60% lower revenue of RM73.776 million, compared with RM187.987 million for the period.
On its prospects for the current financial year, the group said the proposed acquisition of Danum Sinar Sdn Bhd, an oil palm plantation company to be completed in the second quarter of 2017 is expected to contribute positively to the group's earnings in the long term.
It also said that it is focused on the execution of the sewerage infrastructure contract, which has been delayed due to the termination of the previous sub-contractor and will mitigate the cost increase of the project by accelerating works and completing the project within the contract period.
On the construction sector, the group will continue to be involved in water and wastewater infrastructure-related projects.
The group's current projects include the construction of new sewer pipe network and pumping stations including the
rationalisation of the existing sewerage infrastructure in Bunus, Kuala Lumpur as well as the operation and maintenance of a
water treatment plant in Beaufort, Sabah.
The oil and gas sector did not secure any new projects during the year as the industry outlook remains pessimistic due to the huge drop in crude oil prices.
Puncak Niaga is continuously looking to expand its operations in areas related to its core businesses and competencies in the water and wastewater, sewerage, environmental engineering and construction, both locally and abroad as well as exploring opportunities in new business sectors such as oil palm plantation and property development.