KUALA LUMPUR – Malaysian Resources Corporation Bhd has recorded revenue of RM3.2 billion and profit before tax of RM154.3 million for the financial year ended December 31, 2022, compared to RM1.4 billion in revenue and profit before tax of RM61.3 million in 2021.
In a statement, the group said the strong recovery in 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 recovery in property sales.
The property development and investment division recorded an 84% increase in revenue to RM914.6 million and a 15% increase in operating profit to RM176.7 million in 2022.
“This was due to much better operating conditions compared to 2021, which was severely impacted by construction site closures that impeded construction progress and revenue recognition,” it said.
“There was also a strong recovery in sales of completed unsold inventory as well as units from ongoing property development projects under construction as the economy reopened and began to normalise.”
It said the main contributors were the division’s two largest property development projects, Sentral Suites and TRIA 9 Seputeh, which reached construction progress of 89% and 88% respectively.
The division sold RM487.9 million worth of properties in 2022 and had unbilled property sales of RM536.5 million as at December 31, 2022.
The group’s 27.94% equity-owned Sentral REIT and 41% equity-owned Sentral REIT Management Sdn Bhd contributed a combined profit after tax of RM14.9 million, it said.
The engineering, construction, and environment division recorded a 147% increase in revenue to RM2.2 billion – largely contributed by the RM11.4-billion LRT3 project, which achieved physical construction progress of 81% and financial progress of 75% as at December 31, 2022.
Revenue was also contributed from the SUKE Package CA2 and PR1MA Brickfields construction projects. The division recorded an operating profit of RM69.9 million in 2022 against an operating loss of RM40.7 million in 2021.
The division also saw the successful completion of two major infrastructure projects during the year, namely the Mass Rapid Transit 2 Package V210 and Damansara-Shah Alam Elevated Highway Package CB2 projects.
The division’s long-term external client order book was RM26.3 billion as at December 31, 2022, while the unbilled portion was RM17.4 billion.
The group made solid progress in its strategy to diversify its business into new markets and expand overseas in 2022, and has a healthy pipeline of long-term projects.
These include the six-phase 810.57-ac (328-ha) Ipoh Raya integrated industrial park in Perak; as well as a development project in the Gold Coast, Australia, which is targeted for launch in 2023; and in New Zealand, which will begin in 2024.
The group also had a Malaysian construction tender book of RM30 billion as at December 31, 2022. – The Vibes, February 20, 2023
