PETALING JAYA: Sunway Construction Group Bhd (Suncon) posted an 8% decline in net profit to RM33.48 million for its third quarter (Q3) ended Sept 30, 2019 against RM36.39 million in the same quarter a year ago.
Its revenue stood at RM402.58 million for the period, down 27.8% from RM557.32 million reported previously.
According to the group’s Bursa filing, its construction business’ profit before tax dropped 27.3% to RM35.4 million in Q3, as a majority of its projects are at its initial stages coupled with the delay in LRT3 package due to cost optimisation by the client.
Its precast segment swung back to the black after reporting a loss before tax of RM1.9 million a year ago.
SunCon’s nine-month net profit fell 9.5% to RM97.69 million from RM107.93 million, while revenue went down 21.3% to RM1.28 billion from RM1.63 billion.
The group’s outstanding order book as at Sept 30, 2019 amounted to RM5.6 billion, which will sustain for the next three to four years.
This comes after it exceeded the management target of new order book wins of RM1.5 billion with job wins up to Sept 30, 2019 totaling RM1.73 billion.
“While waiting for local projects to be reviewed, we will continue to bid for in-house projects from Sunway Bhd and continue to pursue our ambition to expand in the Asean region. Barring any unforeseen circumstances, we expect to deliver satisfactory performance for the last quarter of this year,” said group managing director Chung Soo Kiong.