Benalec reports RM22.8 million net profit for 4Q

KUALA LUMPUR: Benalec Holdings Bhd posted a net profit of RM22.8 million for its fourth quarter ended June 30 on the back of RM65.9 million in revenue.

Benalec said its revenue increased 29% from the previous quarter due to an increase in income from its marine construction business.

However, profit after tax was lower by 6.5% or RM1.6 million compared with the previous quarter due to recognition of a net gain on the disposal of land held for sales, and fair value gain on the acquisition of a subsidiary in the previous quarter.

For the full-year, it reported RM96.1 million in net profit and RM214.4 million in revenue. Earnings per share stood at 13.2 sen while net assets per share was 47 sen.

Benalec’s marine construction business contributed most of the group’s earnings, followed by its vessel chartering and ship maintenance and shipbuilding division.

Benalec said prospects for growth were bright based on future projects planned in Penang, Melaka, Iskandar Malaysia in Johor, Port Klang, Selangor, and the Sarawak Corridor of Renewable Energy (SCORE).

It said the 10th Malaysia Plan has identified the industry for ports and harbours as a key economic sector for the country’s growth, and has allocated a substantial amount of funding to support the industry.

“The government is committing resources to making Malaysia a high-income, high-gross domestic product nation by the announcement of the five economic regions during the 9th Malaysia Plan, by which the development of these regions encompasses coastal, river and waterfront development as well as the upgrade of infrastructure such as the construction of power plants and energy stations, better drainage control and flood mitigation systems,” it said in notes accompanying the company’s results.

Benalec said opportunities within Asia-Pacific are estimated at RM170 billion in future projects, a compelling incentive for the company to invest and expand its operations beyond Malaysia.