KUALA LUMPUR: Zecon Bhd posted a net profit of RM9.42 million and revenue of RM234.2 million in the third quarter (Q3) ended September 30, 2021,
For a 15-month cumulative total since July 1, 2020, as a result of a change in financial year-end, the company registered a revenue of RM562.4 million with a net profit of RM16.8 million.
On a quarterly basis, earnings per share stood at RM0.35 while losing per share for the 15-month cumulative period ending September 30, 2021, was RM2.28.
Zecons Pan Borneo Highway and Hospital Pakar Kanak-Kanak Universiti Kebangsaan Malaysia (HUKM) remained the primary source of revenue in the quarter under review, contributing RM121.9 million and RM97.8 million, respectively.
Hospital Universiti Kebangsaan Malaysia (UKM), the 243 beds specialist children hospital with 54 rooms hotel which commenced operation in April 2021, also contributed to RM29.5 million in interest income for the three months ended September 30, 2021.
HUKM, a private finance initiative project, started to contribute towards the companys overall cash flows through the gross inflow from the availability and maintenance charges amounting to about RM11.7 million per month.
Zecons stream of cash flows shall continue throughout the concession period of 25.5 years which ends in mid-2046.
The RM1.46 billion Pan Borneo Highway Phase 1 Serian Roundabout to Pantu Junction was 94.89 per cent physically completed as of October 30, 2021.
The Serian Roundabout section will be officially completed ahead of time by mid-December 2021 while the Pantu Junction section is expected to be fully completed in February 2022.
Meanwhile, Zecons medium-term Islamic bond of up to RM1.0 billion was nearing completion, with the issuance date set in the second half of December 2021.
Zecon will utilise part of the proceeds to pay off existing loans, enhance liquidity and inject much-needed cash flow into operations.
Zecon actively participates in tenders for potential projects in Sarawak and Semenanjung Malaysia.
The company had also planned a significant infrastructural project involving one of its strategically located lands.
Riding on the political stability in Sarawak as the state is gearing for election, Zecons prospects remain very positive.