AZRB's 2Q profit up 133%

by **Cals** Tue 26 Aug 2014, 23:32

Business & Markets 2014

Written by Meena Lakshana of theedgemalaysia.com

Tuesday, 26 August 2014 19:21

KUALA LUMPUR (Aug 26): Ahmad Zaki Resources Bhd (AZRB) posted a 133% increase in net profit for the second quarter of financial year 2014 (2QFY14).

In an announcement to Bursa Malaysia today, the company announced net profit of RM3.64 million for 2QFY14 or 1.10 sen a share, compared to RM1.56 million in 2QFY13 or 5.6 sen a share.

Revenue for the quarter rose by 33% to RM171.36 million, from RM128.63 million in the previous corresponding period.

The firm attributed the increase in revenue to its construction division’s clinching of better margin projects that achieved a higher progress rate.

This includes the proposed development of the Langat 2 Water Treatment Plant and Water Recticulation System Phase 1 and the Langat 2 Water Treatment Plant worth RM298 million or 30% joint venture.

Other projects include the completion of works on phase 2 of the Lebuhraya Pantai Timur Project worth RM31 million, and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station on the Sungai Buloh-Kajang Mass Rapid Transit (MRT) line worth RM357 million.

For the six-month period ended June 30, AZRB posted net profit of RM8.11 million, compared with RM4.01 million in the previous corresponding period.

Revenue grew to RM325 million for the six-month period, from RM268.8 million a year ago.

The group expects the construction division to perform better, “as the remaining order book balance remains strong and the prospects for enhancement of the order book is encouraging.”

The firm also noted that its oil and gas division continues to be robust with steady flow of income to the group, and expects to achieve a positive development in the plantation division.

Zaki Holdings (M) Sdn Bhd, vehicle of Datuk Seri Wan Zaki Wan Muda, holds a 59.24% stake in AZRB. Wan Zaki is the executive vice chairman of AZRB.

AZRB was also recently awarded the controversial RM1.55 billion East Klang Valley Expressway (EKVE) project in Selangor, which will be built with a government loan of RM635 million.

The EKVE will connect the Silk Highway in Kajang to the Karak Expressway in Gombak.