Cahya Mata Sarawak 2Q net profit jumps 65%, declares 1.5 sen dividend

by **Cals** Wed 27 Aug 2014, 23:18

Business & Markets 2014

Written by Chen Shaua Fui of theedgemalaysia.com

Wednesday, 27 August 2014 16:25

KUALA LUMPUR (Aug 27): Cahya Mata Sarawak Bhd (CMSB), controlled by the family of Sarawak Governor Tan Sri Abdul Taib Mahmud, saw a 65% jump in its net profit for the second financial quarter ended June 30, 2014 (2QFY14) to RM66.12 million from RM40.01 million a year ago, largely contributed by its cement division.

The cement unit gained from higher selling prices from Feb 17, higher sales volume, and lower production costs resulting from higher clinker and cement productivity and lower power consumption and coal cost.

A recognition of profit for sale of land in 2QFY14 also contributed to the increase in net profit.

Revenue for 2QFY14 rose 13% to RM383.36 million from RM338.33 million a year ago.

CMSB also declared an interim dividend of 1.5 sen for the financial year ending Dec 31, 2014 (FY14), payable on Oct 24.

For the first-half year period, net profit rose 53% to RM105.1 million from RM68.74 million a year ago, contributed by its cement, construction and road maintenance, and property development divisions.

Revenue grew 17% to RM756.6 million from RM648.69 million.

In a statement today, CMSB Group Managing Director Datuk Richard Curtis says the group is on track to deliver strong financial results for the full year of 2014.

“We continue to believe that CMSB is one of the best proxy listed investments for Sarawak’s accelerating economic growth.

"This is driven by the State’s plan to promote energy intensive industries under the Sarawak Corridor for Renewable Energy (SCORE) initiative and consequently from the infrastructure and related services required across the State,” he said.

Curtis adds that CMSB’s 20% stake in the ferro silicon and manganese alloys smelter project with Australia-listed OM Holdings Ltd, and its 40% stake in an integrated phosphate products complex with Malaysian Phosphate Additives Sdn Bhd and Arif Enigma Sdn Bhd, besides other investments being evaluated, are poised to significantly drive up shareholder value.