Mudajaya 3Q profit shrinks 97% on year as construction income falls

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KUALA LUMPUR (Nov 28): Mudajaya Group Bhd's net profit slumped 97% to RM1.07 million in its third quarter ended Sept 30, 2014 (3QFY14), from RM40.03 million a year earlier. The weaker profit was mainly dragged down by its construction segment.

In a statement to Bursa Malaysia today, Mudajaya said 3QFY14 revenue fell to RM208.66 million, from RM391.46 million in 3QFY13.

“The financial performance of the group for 2014 is expected to be weak, due to deferment of some major local projects which the group is currently pursuing, as well as additional provision due to protracted discussion on disputes related to variation orders and claims, which are currently under negotiations,” Mudajaya said.

Cumulatively, Mudajaya recorded a lower net profit of RM29.48 million in the nine-month period (9MFY14), versus RM128.27 million a year earlier. Revenue fell to RM854.06 million, from RM1.2 billion.

Besides construction, Mudajaya also registered revenue decline in its manufacturing, trading and property development segments, during 9MFY14.

Moving forward, Mudajaya said it was eyeing various government and private mega-infrastructure projects. These projects include the Mass Rapid Transit Line 2 & 3, power plants, and highways.

Abroad, Mudajaya said it was evaluating several investment opportunities in the Association of Southeast Asian Nations region. Mudajaya said it was evaluating opportunities in the conventional and renewable energy power sectors.

Mudajaya shares rose one sen or 0.5% at 12.30pm, to settle at RM1.90, giving the company a market capitalisation of RM1.02 billion.

The stock had declined 34% this year, underperforming the FBM KLCI 2% drop.