Puncak Niaga Q2 earnings flat despite lower revenue

PETALING JAYA: Puncak Niaga Holdings Bhd second quarter net profit came in almost flat at RM59.54 million despite a 59.4% fall in revenue to RM65.5 million, due to lower contribution from oil and gas construction revenue.
The profits were supplemented by net profit of tax from discontinued operations of its water assets which are promised to the Selangor state government.
For the six months period, net profit fell by 17.7% to RM125.21 million from RM106.39 million while revenue decreased by 25% to RM128.9 million compared to RM171.8 million, a year ago.
"The decrease in revenue in the current financial quarter and financial year-to-date was mainly due to lower revenue contribution from the oil and gas segment," it told Bursa Malaysia yesterday.
On its prospects, Puncak Niaga said the group remains hopeful that the proposed disposals of its water assets to Selangor government can be completed in 2015 as part of the government's efforts to restructure the water services sector in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya.
It said the group will continue to be involved in the construction of water-related facilities such as water treatment plants (WTP) and pipelines in addition to the sewerage and solid waste sectors.
The group's current major projects include the capacity upgrading of the Bayong WTP in Sarikei, Sarawak; the supply, jointing and laying of pipelines and the construction of three water reservoirs and booster stations in Pakan, Sarawak; and the construction of new sewer pipe network and pumping stations including the rationalisation of the existing sewerage infrastructure in Bunus, Kuala Lumpur.
The group is also currently involved in several ongoing construction tenders related to the water and environmental sectors throughout Malaysia.
On the oil and gas sector, the group will focus on its transportation and installation operations of offshore facilities via the ongoing Pan Malaysia Package B contract secured with Petronas from 2014 to 2016.
"Going forward, the group is looking to continuously expand its operations in areas related to its core businesses, both locally and abroad as well as exploring opportunities in new business sectors such as oil palm plantation sector."