PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) posted an 87.3% plunge in net profit to RM2.52 million for the third quarter ended Sept 30, compared with RM19.79 million in the previous corresponding quarter, due to lower contributions across the group’s various divisions.
Revenue stood at RM372.74 million, 43.8% lower than the RM663.75 million previously.
For the nine-month period, the group’s net profit was 76.3% lower at RM17.71 million, from RM74.77 million due to the sale of two pieces of freehold land in Jalan Kia Peng in Kuala Lumpur and Batu Feringgi Penang for RM387 million which resulted in one-off pre-tax profit gains of RM66.8 million in 2018.
MRCB also noted that its 50%-owned LRT3 project joint venture company MRCB George Kent Sdn Bhd contributed a lower profit after tax of RM1.24 million, compared with RM20.7 million in the corresponding period in 2018.
“This was considerably lower than previously budgeted due to the deferment of progress billings as a result of the remodelling of the project from a PDP (project delivery partner) to a fixed price turnkey project by the government,” it said in its filing with Bursa Malaysia.
Meanwhile, revenue for the cumulative period was 43.4% lower at RM847.76 million.
“Overall, the group had total cumulative unbilled sales in its property development & investment division which are expected to deliver RM1.68 billion in revenue to be booked over the construction time scale of its projects, approximately 92% of which are residential and 8% commercial projects,” it said.
As for its engineering, construction and environment division, the group said it will continue to actively tender for more contracting projects to replenish its order book.
The division currently has open tenders valued at RM1.22 billion. As at Sept 30, the external client order book stood at RM22.3 billion.
