KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) posted pre-tax profit of RM247.3 million on RM2.8 billion revenue in the year ended December 2017.
The profit was 22.9 per cent more than the one achieved in 2016, excluding disposal gains.
MRCB explained that 2016's pre-tax profit was higher as it had booked in a of RM242.6 million from the sale of Menara Shell and other assets compared to only RM60.8 million in gains recognised last year
Group revenue, meanwhile, was 17.3 per cent higher than the RM2.41 billion revenue registered in 2016.
MRCB group managing director Tan Sri Mohamad Salim Fateh Din, in a statement today, said: “2017 was a watershed year in MRCB’s transformation journey. “Despite a challenging timeline, we successfully refurbished KL Sports City in Bukit Jalil in time for the 2017 SEA Games, and we significantly strengthened our balance sheet.
He added that it had tendered for some very large infrastructure projects.
MRCB said the higher revenue last year was mainly derived from the engineering and construction division.
Last year, the group's operating profit from the division had risen eight-fold to RM92.7 million.
MRCB-George Kent Sdn Bhd, which is 50-per cent owned by MRCB and project delivery partners of LRT 3 contributed RM15.2 million in profit.
This, however, was not reflected in the division’s operating profits and was booked under share of results of joint ventures.
After RM468 million worth of contract wins in 2017, MRCB’s external client construction order book currently totals RM6.2 billion.
Its property development and investment division recorded a 35.5 per cent drop in revenue to RM858.7 million.
This was due to the completion of Sentral Residences in KL Sentral and Easton Burwood development in Melbourne very early in the financial year.
Main contributors to the division’s revenue and operating profit include the on-going 9 Seputeh mixed development in Jalan Klang Lama, the enbloc office towers sold at PJ Sentral Garden City and Menara MRCB in Putrajaya.
Despite a challenging property market in 2017, MRCB said this division exceeded its sales target of RM1.2 billion and recorded sales of RM1.4 billion, largely contributed from its Sentral Suites development in KL Sentral and 1060 Carnegie development in Melbourne.
As at December 2017, MRCB's unbilled property sales totaled RM1.71 billion.