KUALA LUMPUR – Malaysian Resources Corporation Bhd (MRCB) recorded a three-fold increase in revenue to RM810.7 million and a five-fold increase in profit before tax of RM31.8 million for the first three months of 2022, compared with a revenue of RM226.7 million and profit before tax of RM5.7 million in the corresponding period in 2021.
The improved performance was due to the full consolidation of the LRT3 project and higher contributions from two of MRCB’s largest property development projects, Sentral Suites and TRIA 9 Seputeh.
Despite the pandemic-related challenges over the last two years, MRCB’s net gearing remained strong at 29%, amongst the lowest in the industry.
The Property Development and Investment Division recorded a 41% increase in revenue to RM186.6 million in Q1 2022. This was due to much better operating conditions compared with the corresponding period in 2021, which was impacted by the movement control order and the resulting mandated lockdowns, as well as construction site closures that impeded construction progress.
The division recorded a 61% increase in operating profit to RM21.1 million in Q1 2022 from RM13.1 million in the corresponding period in 2021, mainly from its two largest property development projects, Sentral Suites and TRIA 9 Seputeh, reaching higher construction progress of 68% and 69%, respectively.
The division sold RM22.9 million worth of properties in Q1 2022 and had unbilled property sales of RM818.3 million. MRCB’s 27.94% equity-owned Sentral REIT and associated company, Sentral REIT Management Sdn Bhd, contributed a combined profit after tax of RM3.9 million.
The Engineering, Construction and Environment Division recorded a seven-fold increase in revenue to RM612.5 million mainly due to the full consolidation of the RM11.4 billion LRT3 project, which achieved physical construction progress of 71% and financial progress of 63%.
Revenue was also contributed from the construction of the EPF headquarters at Kwasa Damansara, the Damansara-Shah Alam Elevated Highway Package CB2, the Mass Rapid Transit 2 Package V210, the Sungai Besi-Ulu Kelang Elevated Expressway Package CA2 and the PR1MA Brickfields Project.
The division recorded an operating profit of RM25.7 million in Q1 2022 against an operating loss of RM1.6 million in the corresponding period in 2021. The division’s long-term external client order book was RM27.3 billion as at March 31, 2022, while the unbilled portion was RM18.5 billion. – The Vibes, May 31, 2022
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