KUALA LUMPUR: Malaysian Resources Corp Bhd’s (MRCB) net profit for the second quarter ended June 30, 2019 fell 66.9% to RM11.06 million from RM33.45 million a year ago.
The lower earnings were due to newer property development projects still being at the early stage of construction as well as income from the LRT3 project being deferred after it was remodelled from a project delivery partner to a fixed price turnkey project.
Its revenue was also down by 40.5% to RM240.97 million versus RM405.25 million in the previous year.
For the six-month period, MRCB’s net profit slumped 72.4% to RM15.19 million from RM54.98 million in the same period last year, while revenue declined 43% to RM475.02 million from RM832.85 million previously.
Commenting on the results, MRCB group managing director Imran Salim said although it has unbilled property sales of RM1.8 billion, as a high-rise developer, its ability to book revenue and profits hinges on construction progress.
“Although construction is progressing well at our Sentral Suites and Carnegie Development in Melbourne, these key projects will not begin contributing significantly to profits until next year, when we also expect the pace of revenue and profit recognition from the LRT3 project to increase,” he said in a a statement.
The group remains confident that its long-term prospects are positive.