KUALA LUMPUR (Nov 29): TRC Synergy Bhd said it has received a notice of termination from MMC Gamuda KVMRT (PDP SSP) Sdn Bhd for works related to the new Sungai Buloh-Serdang-Putrajaya mass rapid transit line (MRT Line 2).
The RM74.39 million contract included works to relocate a craft museum, Karyaneka office and the National Heritage Department office to Bangunan Sultan Abdul Samad as part of the MRT Line 2 project.
“Further to the termination letter, TRC had initiated the negotiation and discussion with the owner’s project delivery partner on the consequences of the termination and to ascertain the final quantum of compensation payable to TRC pursuant to the contract documents. The negotiation is still ongoing,” said TRC in a filing with Bursa Malaysia yesterday.
It said the termination is not expected to materially impact its earnings, net asset and gearing for the financial year ending Dec 31, 2016.
In a separate filing, TRC announced a 78% jump in its net profit to RM15.15 million or 3.15 sen per share, for the third quarter ended Sept 30, 2016, from RM8.51 million or 1.77 sen per share a year ago, boosted by higher margins.
Revenue for the quarter, however, fell 20% to RM165.1 million from RM206.43 million a year ago.
For the cumulative nine-month period, net profit was down 3% at RM20.7 million from RM21.46 million a year ago, while revenue declined 0.8% to RM547.53 million from RM552.1 million.
TRC shares fell 0.5 sen or 1.19% to 41.5 sen yesterday, with a market capitalisation of RM199.41 million.
This article first appeared in The Edge Financial Daily, on Nov 29, 2016. Subscribe to The Edge Financial Daily here.