MRCB Q2 earnings plunge to RM60.10m

PETALING JAYA: Malaysian Resources Corp Bhd's (MRCB) net profit for the second quarter ended June 30, 2015 almost halved to RM60.10 million from RM118.53 million a year ago due to higher expenses and lower profit from operations.
In a filing with Bursa Malaysia yesterday, MRCB reported higher expenses of RM444.54 million in 2Q compared with RM312.16 million a year ago while profit from operations was lower at RM135.34 million compared with RM188.53 million a year ago.
Revenue for the quarter rose 62.82% to RM530.28 million from RM325.69 million a year ago due to higher revenue recognition from all business divisions.
For the six months ended June 30, 2015, net profit more than doubled to RM297.97 million from RM130.52 million a year ago while revenue rose 76.20% to RM934.47 million from RM530.33 million a year ago.
MRCB attributed the strong revenue and net profit growth to the completion of Q Sentral and sale of Platinum Sentral, as well as other ongoing development projects such as Sentral Residences and 9 Seputeh.
"The strong performance and value creation through monetisation and crystallisation of the group's assets including the REITs platform was the results of the transformation plan embarked by the group since the previous financial year," it said.
The group said the purchase of new land bank and the winning of numerous new construction contracts are part of its growth strategy.
"The group will continue to focus on planning and obtaining approval for the launching of its development projects and actively participate in tendering for more construction contracts to boost its revenue and profit. With all these in place, the board is confident of a sustainable growth ahead," it added.