SPK-Sentosa returns to red in 2Q

KUALA LUMPUR: SPK-Sentosa Corporation Bhd's posted a second quarter net profit of RM9.6 million compared to a net loss of RM20 million for the same period last year, driven by the share of profits by its associates involved in aviation services.

The company on Tuesday, Aug 10 posted a revenue of RM58.6 million, an increase of 10% compared to RM53.3 million a year earlier. Earnings per share stood at 7.18 sen in the 2QFY2010 compared to a decline of 15.06 sen in the same period a year ago.

For the six months under review, the company posted a net profit of RM6.8 million compared to a net loss of RM18.6 million a year ago. The company said that the drop of profits for the period is caused by losses recorded by the Sabah-East West Grid Interconnection project, undertaken by the jointly controlled entity of the Group.

“ As a result of lower than expected recovery of cost from a subcontractor arising from an amicable settlement and also cost overrun for a project in the oil and gas division,” it said.

Revenue also declined in the six months under review to RM79 million compared to RM91.4 million in the same period a year ago. Earnings per share stood at 5.11 sen compared to a decline of 13.88 sen a year ago.

On the current financial year’s prospect, the company said that though it is cautiously optimistic of the prospects of the Group for 2010.

“As local construction projects are limited, the Group will focus on its existing construction projects in the Middle East. Nevertheless, the Group will continue to pursue quality projects, both locally and overseas, on a selective basis, to enhance our book order,” it added.

In a separate statement to Bursa, the company announced the resignation of its managing director, Saiful Aznir Shahabudin, who was appointed as the company’s chief executive officer.