KUALA LUMPUR: Mega First Corporation Bhd’s net profit for the financial year 2017 (FY17) ended Dec 31, 2017 jumped 36.5 per cent to RM157.71 million from FY16’s RM115.56 million on the back of a strong performance by its power division.
The diversified company saw its FY17 revenue surge 51 per cent to RM910.86 million from RM600.74 million in FY16 mostly attributable to its power division’s Don Sahong Hydropower project in Laos.
“Construction revenue from Don Sahong increased 78.1 per cent to RM645.4 million from RM362.4 million in 2016, and its resources division’s revenue spiked 21.7 per cent to RM119.9 million (2016: RM98.5 million),” Mega First said in a filing with Bursa Malaysia today.
Although fourth quarter (Q4) FY17 revenue increased to RM236.36 million from RM186.30 million in Q4FY16, its net profit slipped marginally to RM41.27 million from RM41.71 million in the previous corresponding quarter.
Moving forward, Mega First expected the power division to contribute significantly as the construction of the Don Sahong project was slightly ahead of schedule in 2017.
“Overall physical completion of the project stood at 46.5 per cent at the end of 2017.
“The estimated completion of about 33.5 per cent in 2018 will result in higher recognition of construction profit in US dollar term,” it said.
It was also optimistic that strong demand for lime products in Malaysia and the region would bolster the resources’ division despite export revenue being dampened by the effects of a stronger ringgit versus the US dollar. – Bernama