UEM Edgenta Reports Financial Performance for H1 and Q2 2016

August 29, 2016 Press Release No Comments

Local Revenue & Profit Remains Strong

KUALA LUMPUR, 29 August – UEM Edgenta Berhad (“UEM Edgenta” of the Company) today announced its financial results for the six months ended 30 June 2016 (H1) which saw it recording a Profit Before Tax (PBT) and before impairment losses totaling RM78.5 million.

UEM Edgenta’s revenue for H1 stood at RM1.349 billion which is lower by RM144.5 million compared to RM1.493 billion recorded during the preceding year. However, the Company’s second quarter (Q2) for 2016 saw its revenue increased by 7 percent to RM697.5 million compared to RM651.8 million recorded in the first quarter 2016.

The higher revenue for Q2 is due to higher contribution from Integrated Facilities Management (IFM) and Infra Services (IS) Division totaling RM37.4 million. The IFM Division posted revenue of RM32.7 million where it recognises revenue from its new subsidiary, KFM Holdings Sdn Bhd and private clients from the healthcare services while the IS Division recorded a rise in revenue by RM5.2 million following increase civil and pavement works carried out on the North-South Expressway.

With regards to the impairment totaling RM68.3 million, Azmir Merican, UEM Edgenta’s Managing Director/Chief Executive Officer said that it’s a prudent decision given that Opus Stewart Weir is faced with continued weakening oil prices while Opus’ Australian operations is still confronted with sluggish economic environment of the country.

“We are optimistic of the future and will continue to pursue opportunities in infrastructure projects for both our IS and AC divisions. In fact, we are well positioned to capture some of the RM150 billion worth of key infrastructure projects initiated by the Government for the next five years.

“Our order book is currently still very strong at RM5.5 billion and this includes the recently secured RM87 million contract for the Relocation of Telecommunication Works for MRT2 as well as RM87.3 million routine maintenance services and network maintenance management for LPT2. We believe there are many other similar projects in the market which we could capture. We are continuously pursuing growth and we are expecting a positive result for 2016.”

The Company also announced that its Deputy Chairman, Amir Hamzah Azizan has been appointed as UEM Edgenta’s Chairman, effective 29 August 2016.