Cahya Mata Sarawak Berhad Records Profit – 1Q pre-tax profit up 10% to RM54.81 million

Kuching (Sarawak), Wednesday, 22 May 2013. Cahya Mata Sarawak Berhad (CMSB – 2852), the State’s leading infrastructure facilitator, is pleased to announce that it has reported 1Q13 profit before tax (PBT) of RM54.81 million, a 10% increase from the same period of last year. Quarter-on-quarter revenue rose 35% to RM310.36 million from RM230.34 million with all Divisions reporting higher revenues compared to 1Q12, profit after tax and non-controlling interests declined marginally by 8% to RM28.73 million as the higher PBT was contributed mostly by jointly owned subsidiaries. Earnings per share stood at RM0.089 versus RM0.095 from the previous corresponding period of last year.

Whilst cement sales volumes rose compared to 1Q12, the Cement Division registered a quarter-on-quarter decline in PBT of 25% of RM21.09 million versus RM28.08 million for the same period last year. This was attributable to higher clinker costs due to the upgraded clinker plant being not yet fully operational. Outside of the Property Development Division which recorded a small loss, the Construction Materials & Trading, Construction & Road Maintenance and Samalaju Development Divisions all reported higher revenues and PBT over the same period last year. The Group however saw lower share of profit from its listed associates due to a loss recorded by K&N Kenanga Holdings Berhad for 1Q13. However, the decline was mitigated by higher profits from KKB Engineering Berhad. OM Materials (Sarawak) Sdn Bhd which has yet to commence operations, recorded a marginal profit from interest income.

Commenting on the results, Dato’ Richard Curtis, Group Managing Director of CMSB said, “This quarter has been another successful quarter for us in terms of performance against targets. Significant achievements have been recorded namely by the Construction Materials & Trading, Construction & Road Maintenance and the Samalaju Development Divisions which saw robust rises quarter-on-quarter in PBT by 227%, 37% and 48% respectively. Now with our upgraded clinker plant back in production, the profitability of our Cement Division is set for recovery in line with our projections.”

“The Group remains confident of its sustainable growth in the medium and long term. Sarawak is expected to remain relatively insulated from global uncertainties thanks to the many projects taking off in the Sarawak Corridor of Renewable Energy (SCORE) which are set to propel the State’s economy and GDP to new heights. Being a leading Sarawak infrastructure development company and with existing (and planned) investments in energy intensive industrial projects in SCORE, the first of which is CMSB’s 20% stake in the joint venture ferro silicon alloys smelter project with Australian listed OM Holdings Ltd, CMSB’s businesses across the board are set to grow and to drive up shareholder value. Our healthy balance sheet, local knowledge, experienced management team and synergised portfolio of Sarawak based businesses enable us to maximise our participation in the Sarawak growth story. Against this backdrop, CMSB is on track to be the best overall proxy investment for Sarawak’s accelerating economic potential” said Dato’ Curtis.