Corporate results: UOA Development, Aeon, Carlsberg Malaysia and Globaltech Formation

UOA Dev 2Q earnings up on new property sales 
UOA Development Bhd’s net profit for the second quarter ended June 30, 2019 (2Q19) rose 5.98% year-on-year (YoY) to RM125.09 million, mainly on progressive recognition of its on-going development projects and sale of inventories. In a statement to the exchange yesterday, the property developer noted new property sales during the three months were RM318.8 million with contributions mainly from projects such as South Link Lifestyle Apartments, Sentul Point Suite Apartments, Desa Green and United Point Residence. Quarterly revenue increased 12.91% YoY to RM344.33 million. Earnings per share for the quarter was 6.78 sen. UOA’s net profit for the first half of 2019 (1H19) rose 23% YoY to RM184.95 million while revenue improved 23.5% YoY to RM589 million. “The group remains its focus on development at targeted geographical locations and continue to assess opportunities for land acquisitions that meet the criteria,” it noted in its filing. UOA Development’s total unbilled sales as at 1H19 amounted to RM1.17 billion.
 
Aeon 2Q profit close to doubles on retail, property biz
Aeon Co (M) Bhd’s net profit close to doubled to RM19.45 million for its second quarter ended June 30 this year (2Q19) on higher contributions from the retail and property management divisions. The company posted a RM9.79 million profit in the corresponding quarter last year. Revenue for the quarter grew 3.8% year-on-year (YoY) to RM1.1 billion on newly renovated stores, newly opened specialty shops and new store opening at the beginning of the year. For the first half of the year, Aeon’s net profit rose 38.1% YoY to RM52.09 million while turnover improved 6% YoY to RM2.31 billion. In an exchange filing yesterday, the retailer noted it expects the remainder of the year to be challenging on the forecast softening of the domestic economy, while occupancy and rental rates will be similarly challenged. It will leverage on its competitive strengths to draw in customer traffic as it continues to refurbish selected stores and employ appropriate marketing and pricing strategies as well as merchandise assortment reformation.

Carlsberg Malaysia MD Ted Akiskalos steps down 
Carlsberg Brewery Malaysia Bhd MD Theodoros Akiskalos has stepped down from the post of MD at the company after helming the post since May 1 this year. Akiskalos who oversees Carlsberg operations in Malaysia and Singapore as well as its investment in Sri Lanka, has tendered his resignation to relocate to Europe for family reasons, the company said in an exchange filing yesterday. He will leave the company and the Carlsberg Group effective Oct 25, 2019, and will join a private equity investment firm based in London. Carlsberg Malaysia added that Akiskalos will continue to manage the business affairs of the company to ensure its SAIL’22 strategic initiatives are executed effectively during the transition period. The company noted the search for his successor is underway and will be announced in due course. 

Indonesia terminates Globaltech production sharing contract
Indonesian authorities have terminated Globaltech Formation Bhd’s subsidiary, NuEnergy Gas Ltd’s Bontang Bengalon production sharing contract (BB PSC) on the grounds of non-discovery of coal bed methane at the end of the sixth contract year. This comes after NuEnergy submitted a proposal to the Indonesia Minister of Energy and Mineral Resources for a contract amendment. NuEnergy had sought to allow for the extension of the exploration period and to continue with further exploration program development through the Indonesian Special Task Force for upstream oil and gas business activities commonly referred to as SKK Migas, which the company received the notice of termination from. Globaltech, in an exchange filing yesterday, noted NuEnergy is required to relinquish the remaining contract area and to fulfil its remaining obligation under the PSC. It added BB PSC has a net carrying value of US$797,868 and there will be no operational impact to the company after the termination. NuEnergy will send a response to the notice, appeal to the government of Indonesia and will update the outcome of the appeal in due course.