KUALA LUMPUR: Highway concessionaire WCE Holdings Bhd reported a net loss of RM25.8 million for the first quarter of 2025 (1Q25).
This was a slight improvement from the RM26.4 million net loss in the same quarter of the previous year (1Q24), reflecting a 2.09 per cent decrease.
The company's revenue dropped 34.8 per cent, from RM116 million to RM75.5 million, primarily due to reduced construction activity after the completion of two additional sections of the West Coast Expressway (WCE) project in the prior financial year.
WCE posted a slightly higher pre-tax loss of RM34.6 million in Q1 compared to the RM32.2 million loss recorded a year ago.
However, it experienced a substantial 115 per cent increase in sectional average daily traffic, attributed to the opening of Section 6 (Bandar Bukit Raja Utara-Assam Jawa) and Section 11 (Beruas-Taiping Selatan) during the financial year 2024 (FY24).
Additionally, toll collection revenue saw a significant boost, rising by 93 per cent from RM13.5 million in 1Q24 to RM26.1 million in 1Q25.
Its earnings before interest, taxes, depreciation, and amortisation (Ebitda) also surged to RM18.1 million for 1Q25, a 147 per cent increase from RM7.3 million in 1Q24.
WCE said its concession segment experienced consistent growth in the toll division, with a 93 per cent rise in toll collection revenue for 1Q25 compared to the same quarter of the previous year.
This was fuelled by higher traffic volumes resulting from the opening of two additional sections.
"On the other hand, revenue for the construction of the concession segment decreased by 59 per cent compared to 1Q24, reflecting the completion of Sections 6 and 11 of the WCE project in the previous year," it added.
It announced Section 1 (Banting-South Klang Valley Expressway is set to open on August 30, 2024, with Section 2 (SKVE-Shah Alam Expressway expected to open shortly thereafter.
WCE expects further revenue growth once Sections 1 and 2 are operational.
It also expects initial losses during the early years of toll operations due to the end of interest expenses capitalised for completed sections.
"The staggered opening of the remaining sections is expected to boost sectional toll revenue and is poised to improve the group's future financial performance positively in terms of cash flows and operating results.
"Once the toll operations are fully operational with increased and stabilised traffic volume, the group expects a shift toward profitability as revenue growth outpaces interest costs," said WCE.