KUALA LUMPUR – Malaysian Resources Corporation Bhd (MRCB) recorded a 34% decline in revenue to RM590.3 million and a loss before tax of RM62.6 million in the nine months ended September 30, compared with a loss before tax of RM190.4 million in the corresponding period last year.
The lower revenue was due to the enhanced and full movement control orders that resulted in construction site closures between June and August, which were much longer than those during the same period last year, and led to major disruptions in the building materials supply chain.
This significantly impacted construction progress that was already impacted by ongoing Covid-19 restrictions and an ongoing shortage of workers.
The 67% narrowing of losses was due to a RM197.4 million provision made for the impairment of contract assets, trade, and other receivables as a result of the pandemic last year.
Its property development and investment division recorded a 29% decline in revenue to RM345.9 million and a 60% decline in profit to RM17.6 million in the nine months ended September 30, compared with RM489.4 million and RM44.4 million respectively in the corresponding period last year.
The lower revenue and profit was largely due to only 45 units achieving financial settlement at 1060 Carnegie in Melbourne during the nine months ended September 30, compared with 104 units in the corresponding period last year.
Revenue and profit recognition was also hampered by slow construction progress due to site closures and restrictions in Malaysia, affecting contributions from Sentral Suites in KL Sentral, the 9 Seputeh mixed residential development in Jalan Klang Lama, and Alstonia in Bukit Rahman Putra.
The division sold RM165.2 million worth of properties in the first nine months of this year, and had unbilled property sales of RM941 million.
Its engineering, construction, and environment division recorded revenue of RM206.5 million and a loss of RM51.7 million in the first nine months of this year.
Revenue was mainly contributed by the construction of the Employees Provident Fund headquarters at Kwasa Sentral, Damansara-Shah Alam Elevated Highway Package CB2, Mass Rapid Transit Line 2 Package V210, and Sg Besi-Ulu Kelang Elevated Expressway Package CA2.
The loss, while showing a marked improvement compared with the corresponding period last year, was largely due to site closures and significant supply chain disruptions that continued to impact construction progress.
The group’s Light Rail Transit 3 project joint venture company Setia Utama LRT 3 Sdn Bhd (formerly known as MRCB George Kent Sdn Bhd) contributed profits after tax of RM18.8 million compared with RM1.6 million in the corresponding period last year, due to higher construction progress.
Following the acquisition of the remaining 50% equity interest, Setia Utama is now a wholly owned indirect subsidiary, and the group will now be able to recognise 100% of the profits from Setia Utama moving forward. – The Vibes, November 26, 2021
