KUALA LUMPUR (May 22): JAKS Resources Bhd posted a net profit of RM19.75 million for its first quarter ended March 31, 2021 (1QFY21) versus a net loss of RM6.22 million in the corresponding quarter a year ago.

The turnaround was mainly underpinned by the contribution of RM29.8 million from its 30% stake in joint venture company JAKS Hai Duong Power Co Ltd, which operates a power plant of 1,200MW capacity in Vietnam, following the commencement of commercial operations for its first and second units in fourth quarter and January this year, the company said in a filing with Bursa Malaysia.

Quarterly revenue, however, plunged 76.8% to RM17.45 million from RM75.22 million a year before due to the absence of revenue contribution from the Vietnam engineering, procurement and construction work, as it reached the tail end of the project, as well as the reimposition of the Movement Control Order in January 2021, which resulted in work delays and supply chain disruptions.

"As we move further into 2021, the group will continue to recognise a substantial portion of stable recurring income from the 1,200MW Hai Duong Power Plant joint venture for the next 25 years," said its chief executive officer Andy Ang Lam Poah in a separate statement yesterday.

According to him, the recurring income will support the group through this volatile period while the group is working on the execution of the new large-scale solar photovoltaic plant (LSS4), a renewable energy project, which the group had been shortlisted for.

"Along with the prospering power and energy division, we will remain focused on our construction business as we deliver our ongoing local construction projects which are near completion, while we selectively explore more projects that provide higher margins to replenish our order book," he added.

JAKS Resources' share price dropped 0.5 sen to 59.5 sen yesterday, bringing it a market capitalisation of RM1.05 billion. Year to date, the stock has dropped 14.4%.

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