Sarawak Cable posts net loss of RM90.1m in 5Q22

by S BIRRUNTHA / pic credit:

SARAWAK Cable Bhd (SCable) has registered a net loss of RM90.12 million for the fifth quarter ended May 31, 2022 (5Q22), on the back of RM60.7 million in revenue and a loss per share of 24.45 sen.

In a filing to Bursa Malaysia today, the cable and wire producer said the lower earnings were due to customers for both cable and wires, and galvanised products and steel structures segment has delayed in materialisation of their respective book orders and minimal progress for the projects under the transmission line construction segment.

At the same time, the group said it recognised loss due to assets held for sale amounting to RM59.7 million and de-recognised deferred tax assets amounting to RM21.7 million.

On a segmental basis, SCable said the sales of cables and wires segment contributed 89.3% of the total revenue of the group for the period ended May 31, 2022 and is the main contributor to the group’s operating profit in 2022.

“Market demand for products under this segment remains challenging but has shown improvement in consideration that all economic sectors in Malaysia were reopened in April 2022.

“The group continues to explore opportunities to increase its market share locally and overseas,” it noted.

The sales of galvanised products and steel structures segment contributed 3.6% of the total revenue of the group.

SCable added that market demand for products under this segment has started to pick up consideration since all economic sectors reopened.

The group said it continues to explore opportunities to supply and sell its products and services in Malaysia and especially on Borneo Island.

Meanwhile, the transmission line construction segment contributed 6.6% of the total revenue of the group for the period ended May 31, 2022.

“The group anticipates increased contribution from this segment in view that all movement restrictions were fully lifted in April 2022.

“The group continuous plans for the power transmission industry, includes active participation in works as subcontractors and implement and strengthen our project management team to better manage the cost and completion timeline of ongoing projects,” it said.

The helicopter services and corporate segment contributed RM3.9 million to the total revenue of the group, mainly due to the contribution from the power generation segment. 

The segment provides power generation business, provision of helicopter services and group-level corporate and management services.

Moving forward, SCable said its cable and wires segment has good book orders and that there is an increase in the book orders for galvanised products and steel structures segment, as well as the transmission line construction segment. 

“These increased book orders will be contributing positively to the group.

“The group anticipates improving performance in the coming financial year, barring any unforeseen circumstances,” the group noted.

Earlier this morning, trading in SCable’s shares was halted from 9am and resumed with effect from 10am.

At 3.12pm today, the group’s shares fell half a sen or 3.85% to 12 sen, giving it a market capitalisation of RM49.87 million.