KUALA LUMPUR,: Total asset solutions player, UEM Edgenta Bhd (UEM Edgenta), has declared an interim dividend of 8.0 sen per ordinary share on the back of RM1.62 billion in revenue posted for the six months ended June 30, 2017.
The interim dividend of 8.0 sen per ordinary share which will amount to an aggregate payment of RM66.5 million, will be paid to shareholders on September 20, 2017.
“The healthy dividend declared follows a healthy revenue and profit before tax posted for H1 2017 which was RM1.63 billion versus RM1.35 billion in the corresponding period last year and RM93.8 million compared with RM10.3 million recorded for the same period in 2016, respectively,” it said in a statement.
The 8.0 sen per ordinary share declared represented a payout ratio of 122 per cent and exceeded the company’s dividend payout of 7.0 sen paid in FY2016. It also exceeded its dividend policy of distributing up to 70 per cent of profit after tax and non-controlling interest (PATANCI).
UEM Edgenta Managing Director/Chief Executive Officer Datuk Azmir Merican said: “The interim dividend declared showcases our promise in ensuring good returns to shareholders and we are committed to dividend payout as we have in the past.”
For the second quarter 2017 (2Q2017), UEM Edgenta recorded a revenue of RM858.9 million, an 11.7 per cent increase or RM89.9 million, versus the preceding quarter’s RM769.0 million. The contributing factor for this increase was higher contribution from its divisions.
UEM Edgenta’s Infra Services division recorded a rise in revenue by RM70.4 million mainly due to higher civil and pavement works carried out for the North-South Expressway while the healthcare services division recorded higher revenue by RM9.9 million mainly due to higher variation orders at the public hospitals.
Its consultancy division recorded an increase in revenue by RM6.0 million mainly from the Malaysian operations; while the Real Estate Services division also recorded higher revenue by RM3.4 million mainly due to higher work progress for the Menara Tun Hussein Onn project.
“We expect the strong operational momentum to continue for the rest of 2017 as we embark on various operational initiatives to drive operational efficiency, such as implementation of Enterprise Resource Planning to enhance our back-end support system, integration of processes of acquired businesses and effectively implement performance based contracting.
“In addition, the recently announced proposed divestment of our 61.2 per cent equity stake in its New Zealand-based subsidiary, Opus International Consultants Ltd, for RM504.1 million will allow us to use the proceeds, among others, to pare down debts.
“It will also provide UEM Edgenta with the financial resources and enable management to focus on driving as well as supporting the organic growth and operational excellence initiatives in our core sectors spanning healthcare, infrastructure and real estate in key markets namely Malaysia, Singapore and Taiwan,” added Azmir. - Bernama