MRCB posts RM10m net profit in 3Q

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) posted net profit of RM10.02 million in its third quarter ended Sept 30, 2009 versus a net loss of RM26.81 million a year ago due to better profit margins after completing projects and recognition of profit from its on-going work progress.

MRCB said on Tuesday, Nov 17 revenue rose 43.3% to RM257.11 million from RM179.38 million. Earnings per share were 1.10 sen compared with a loss per share of 2.95 sen.

On the 3Q performance, it said the profits were mainly contributed by realization of better profit margins from completion of existing projects and consistent recognition of profit from the Group's on-going work progress. The losses recorded a year ago was mainly due to impairment in investments and a higher cost impact arising from escalations in material prices and electricity tariffs.

For the nine-months ended Sept 30, net profit was RM22.12 million versus net loss of RM17.34 million. Revenue was RM639.95 million compared with RM585 million. Revenue was RM639.9 million compared with RM585.0 million.

"Higher revenue was recorded in all business segments except for property development which enjoyed relatively higher revenue recognition in the preceding period arising from a one-off land sale in KL Sentral development," it said.

MRCB said the better performance in the nine-months ended Sept 30 this year was due to the improved operational results. The preceding period also recorded higher finance cost from the one-off premium charged on the early settlement of a bond issued by a subsidiary.

It was upbeat on the prospects, adding it expected to be fully engaged with its ongoing construction projects and property development of more than 6 million square feet of hotel, retail and office space in Kuala Lumpur Sentral.

"The group is leveraging its economies of scale and innovative value engineering to improve the group's performance in the coming years. 

The Group is also investing resources into the design and development of sustainable buildings complying with international and Malaysian standards. The ongoing landmark office developments within KL Sentral, including 348 Sentral, Nu Sentral and KL Sentral Park will meet the LEED, BCA GreenMark and Green Building Index standards," it said.

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