UEM Sunrise Bhd’s net profit for the third quarter ended Sept 30, 2018 (3Q18), declined by 85.2% year-on-year (YoY) to RM21.2 million due to lower land sale recognised in the current quarter. Revenue dropped by 49.2% YoY to RM430 million from RM846 million in 3Q17 as the group sold land in Alderbridge, Canada, and Iskandar Puteri in 3Q17, its exchange filing yesterday noted. UEM Sunrise said its property development segment registered higher revenue in the period driven by its maiden Australia project, Aurora Melbourne, that contributed RM196 million to the revenue. “We are on track to hit our sales target of RM1.2 billion considering as at end of September, our sales are already RM900.5 million,” MD and CEO Anwar Syahrin Abdul Ajib said in a statement. The group said products with unique value proposition, strategic location and attractive price offering will continue to generate demand and create sales. In the southern region, UEM Sunrise intends to launch a mid-market development in Gerbang Nusajaya, identified as Aspira Park Homes which will have an estimated gross development value of RM95.3 million.

 

Sapura Energy Bhd’s wholly-owned subsidiaries have been selected by the Saudi Arabian Oil Company (Saudi Aramco) for the long-term agreement (LTA) programme which calls for engineering, procurement, fabrication, transportation and installation (EPCI) contract participation to support Saudi Aramco’s offshore projects. The LTA programme will be for a period of six years with options for extension. The LTA allows Sapura Energy’s subsidiaries to bid for future EPCI opportunities for offshore fields in the Kingdom of Saudi Arabia, Sapura Energy noted in an exchange filing yesterday.

 

Cahya Mata Sarawak Bhd (CMS) posted a 23.4% year-on-year (YoY) jump in net profit to RM78 million in the third quarter (5Q) ended Sept 30, 2018, largely contributed by an improved performance from its associate companies and property development division. Revenue for the period rose to RM465.2 million from RM357.4 million it made in 3Q17. For the January to September period, CMS’s revenue increased by 21% YoY to RM1.22 billion due to the increase in the share of results from associates. The improvement in CMS financial performance for the first nine months has attributed to the turnaround of its associate, OM Materials (Sarawak) Sdn Bhd, and improved contributions other associate companies including SACOFA Sdn Bhd and Kenanga Investment Bank Bhd, the Kuching based company noted in an exchange filing yesterday. CMS is optimistic sales of its cement division in 2018 will be better than 2017 but profitability is expected to be dampened by the below capacity performance of the clinker plant as well as higher repair costs incurred. It added its construction materials and trading division is facing an unprecedented shortage of quarry aggregates and quarry sand due to a steep spike in demand from the Pan Borneo Highway project. This shortage is expected to continue in the next two to three years.

 

Aeon Co (M) Bhd’s net profit for the third quarter ended Sept 30, 2018, rose 14.7% year-on-year (YoY) to RM13.9 million on higher revenue from its retail as a result of better merchandise assortment. The supermarket retailer told Bursa Malaysia yesterday revenue increased by 10.8% to RM1.06 billion compared to RM961 million recorded in the same period last year, largely contributed by the opening of new stores and newly renovated stores. Aeon added its retail business will continue to refurbish selected stores; employ appropriate marketing and pricing strategies, merchandise assortment reformation; maintaining quality customer service and operational efficiency efforts to ensure its core businesses will benefit. The company said occupancy rate and rental rates to remain challenging under its property management services segment. It said the current year performance will also be impacted by the share of operating and impairment loss on its investment in its associate which have opted to close down its business outlets.

 

Naim Holdings Bhd posted a net profit of RM30.32 million in the third-quarter ended Sept 30, 2018 (3Q18) compared to a net loss of RM95.01 million recorded a year ago for the same period. Revenue for the period soared to RM178.76 million from RM53.65 million posted the year prior. For the nine months ended Sept 30, the Sarawak based property developer and construction firm made a net profit of RM23.4 million versus a net loss of RM130.95 million the year before while revenue jumped 68.2% year-on-year (YoY) to RM438.95 million. In an exchange filing yesterday, Naim noted the higher revenue was contributed by a 78% YoY increase in both its property and construction divisions due to increased work progress and additional new property sales. The group’s property and construction divisions achieved a combined profit of RM27.7 million during 9M18, against a loss of RM76.2 million registered last year. Its share of results in Dayang Enterprise Holdings Bhd and its subsidiary, Perdana Petroleum Bhd, also improved to a profit of RM12 million in 9M18 from a loss of RM25 million in September 2017. Going forward, the group intends to focus on its existing three flagship integrated developments in Miri, Bintulu and Kuching, Sarawak, and undertake various initiatives to sell off existing property stocks, as it expects the market to remain very challenging. It has also adopted a more cautious approach towards product launches and product types, to be more selective and sensitive to buyers’ demand and market conditions. More medium range and affordable property will be introduced to local markets in the years to come, Naim stated in its filing. Its construction arm will focus on completing its current outstanding orderbook at decent margins and within the scheduled timeline. It will also be cautious on project tendering, with focus particularly on projects where it has proven records and experiences supported with current project management resources.

 

Malaysian Bulk Carriers Bhd (Maybulk) made a net profit of RM23.02 million for the third quarter ended Sept 30, 2018 (3Q18) against a net loss of RM17.82 million a year ago due to the absence of impairment loss from the disposal of Singapore-listed PACC Offshore Services Holdings Ltd (POSH). The shipping told Bursa Malaysia yesterday, it ceased sharing POSH results since May 2018 nor impairment on investment in POSH in the quarter. Maybulk added the sale of POSH for RM251 million significantly improved the group’s liquidity and enabled the group to better position itself in an improving dry bulk shipping market. It added global growth is expected to remain stable and ship supply continues to shrink owing to a low order book for next 18 months. Dry bulk freight has improved over the last nine months and is expected to stay favourable in the near term. Maybulk’s revenue for the three months decreased by 11.05% year-on-year (YoY) to RM58.18 million.

 

Hengyuan Refining Co Bhd posted a net loss of RM122 million in the third quarter ended Sept 30, 2018, compared to a RM362 million net profit in the same quarter last year, due to reduced sales volume as a direct result of the planned shutdown in delivering the Major Turnaround 2018 (MTA 2018). The refiner said production volume declined to 5.9 million barrels in the quarter under review compared to 10.9 million barrels recorded last year, reflecting the scheduled downtime under the MTA 2018 that commenced on Aug 6 and completed on Oct 21, according to its exchange filing yesterday. Revenue eased 30.2% year-on-year (YoY) to RM2.07 billion due to the shutdown. Hengyuan said refining margins are expected to remain volatile in the near term based on published forward market prices and refining margins. In addition to completing MTA 2018, the company has completed the ATLAS II infrastructure project, installing a new 420-tonne top dome and cyclones in the long residue catalytic cracking unit (LRCCU). The new dome is expected to extend the LRCCU’s operating life for another 20 years, enabling the refinery to continue efficient and profitable operations.