business

SCIB records much improved quarterly revenue, profit

KUALA LUMPUR: Sarawak Consolidated Industries Bhd posted RM5.97 million net profit in the second quarter ended June 30 2020 to reverse the RM110,000 net loss a year ago.

Group revenue rose more than four fold to RM94.91 million from RM17.86 million previously, SCIB said in a statement today.

The higher revenue was mainly contributed by its construction and EPCC segment at RM84.53 million followed by its manufacturing segment at RM10.38 million.

These make up 89.1 per cent and 10.9 per cent to the company's total revenue respectively.

On a year-to-date basis, SCIB registered a total revenue of RM146.69 million, up 316 per cent from RM35.30 million in the corresponding cumulative six months in 2019,

Group net profit stood at RM9.34 million compared to RM1.48 million previously.

Group managing director and chief executive officer Rosland Othman is highly optimistic of moving forward.

"As the government revives more on the large-scale infrastructure projects, the company is eyeing the prospects in the 2021 Budget in November 2020 and 12th Malaysian Plan.

"Being the largest precast concrete and IBS manufacturer in East Malaysia coupled with our synergistic expertise in building materials, manufacturing and civil engineering construction, we expect to benefit from our state-funded people-centric construction projects.

SCIB has entered into an acquisition agreement to acquire 30 per cent of Edaran Kencana Sdn Bhd, which is a Petronas-licenced vendor."

"Outside Malaysia, the management is looking at expanding into Indonesia, Oman, Qatar and the UAE with our experiences and networks as long-term initiatives," Rosland said.

"Besides that, there are several opportunities abroad following the relocation of capital from Jakarta to Kalimantan, infrastructure requirements from Qatar for hosting the FIFA World Cup, from UAE for organising the World Expo as well as the development of Special Economic Zone which attracts the international investment flow into Oman," he added.

SCIB has achieved its order book target for this year with RM1.6 billion worth of works on hand as at August.

The company is proposing to undertake bonus issue of up to 367.89 million new shares on a basis of three bonus shares for every one existing shares, as well as an issuance of up to 245.26 million free warrants.

SCIB has declared a first interim single tier dividend of 2.3 sen per share, payable on September 30.

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