Taliworks 3Q earnings plunge, declares 1.65 sen dividend

TALIWORKS Corp Bhd (TCB) net profit fell almost 70% to RM12.5 million for the third quarter ended September 30, 2020 (3Q22) compared to RM41.35 million achieved in the same quarter in 2021 due to the receipt of toll compensation in the corresponding period, and higher amortisation of intangible assets and depreciation expenses in the current financial period.

“The revenue from the toll business segment was lower on account of the toll compensation of RM43.5 million received by Grand Saga Sdn Bhd from the government of Malaysia for the non-increase in scheduled toll hike in respect of 2020 in the corresponding period,” it told the stock exchange yesterday.

For the current quarter, the group recorded a revenue of RM91.28 million, a decrease of 10.8% from RM102.31 million in the corresponding quarter.

“The receipt of toll compensation by Grand Saga in the corresponding quarter was the primary cause of the lower group revenue,” it said.

However, it noted that the lower revenue from the toll segment was mitigated by contribution from water treatment, supply and distribution segment, construction segment, as well as renewables segment. 

Taliworks declared a third interim single-tier dividend of 1.65 sen per share amounting to RM33.26 million for the fiscal year Dec 31, 2022 to be payable on Dec 23, 2022.

For the nine months period, net profit was almost halved to RM34.14 compared to RM66.31 million a year before.

Revenue, meanwhile, increased to 9.6% to RM251.85 million from RM229.84 million attributed to higher revenue from water treatment, supply and distribution and construction segments as well as revenue contribution from the renewables segment. 

Commenting on its prospects, the group said it will continue with its strategy to focus on mature operational cash-generating utilities, as well as infrastructure businesses with a view of generating new income streams, and provide a recurring and stable source of cashflow to the group to support the company’s dividend policy. ― TMR/graphic by TMR