MRCB’s revenue, pre-tax profits up for Jan-Sept period

KUALA LUMPUR – Malaysian Resources Corp Bhd (MRCB) has recorded revenue of RM2.4 billion and before-tax profits of RM116.6 million for the nine months ending September 30, the group said today.

This is a stronger performance compared to RM590.3 million revenue and a loss before tax of RM62.6 million in the corresponding period in 2021. 

“The improved performance was mainly due to more normalised operations after two years of Covid-19 related disruptions, which resulted in increased revenue and profit recognition from construction progress and a pick-up in sales of completed inventory,” MRCB said in a statement.

Its property development and investment division recorded an 89% increase in revenue to RM653.5 million, and a 608% increase in operating profit to RM124.6 million for the nine months of 2022. 

This was due to better operating conditions compared to the corresponding period in 2021, which was impacted by construction site closures that impeded construction progress.

“There was also an encouraging growth in property sales during the period as the economy reopened and began to normalise. 

“The main contributors were from the division’s two largest property development projects, Sentral Suites and TRIA 9 Seputeh, which reached higher construction progress of 81% and 85% respectively,” MRCB added.

In terms of sales, the division sold RM342.2 million worth of properties for the nine months of 2022, and had unbilled property sales of RM624.0 million. 

The group’s 27.94% equity owned Sentral REIT and associated company, Sentral REIT Management Sdn Bhd, contributed a combined profit after tax of RM11.5 million.

Meanwhile, MRCB’s engineering, construction, and environment division recorded a 711% increase in revenue to RM1.7 billion, aided by the RM11.4 billion LRT3 project, which achieved physical construction progress of 77% and financial progress of 71% as at September 30. 

Revenue was also contributed from the construction of Menara KWSP at Kwasa Damansara, DASH Package CB2, MRT2 Package V210, SUKE Package CA2, and the PR1MA Brickfields Project.

The division also recorded a 219% increase in operating profit to RM61.3 million for the nine months of 2022 against an operating loss of RM51.7 million in the corresponding period in 2021. 

“The division’s long-term external client order book was RM26.7 billion as at 30 September 2022, while the unbilled portion was RM17.9 billion.”

MRCB said it continues to have a healthy pipeline of long-term projects.

These include the six-phase, 810.57-ac integrated logistics park in Perak, as well as projects in the Gold Coast, Australia (GDV: AUD296 million), which is targeted for launch in early 2023.

There are also projects in New Zealand (GDV: NZD452 million), which will begin development in 2024. The group also has a construction tender book worth RM30 billion as at September 30. – The Vibes, December 1, 2022