KUALA LUMPUR: WTK Holdings Bhd swung to a net profit of RM63.18 million for the first quarter ended March 31, 2018, from a net loss of RM4.28 million a year earlier mainly due to a RM120.23 million gain on the deconsolidation of a wholly-owned subsidiary.
Revenue fell to RM183.23 million from RM209.52 million previously as it recorded lower timber sales due to shortage of quality logs.
In a filing with Bursa Malaysia, the company attributed the better profit to the gain from the deconsolidation of Alanya Marine Ventures Sdn Bhd. The subsidiary, the main unit of the group's oil and gas division, was wound up in February.
Moving forward, the group expected the expanding Japanese economy, coupled with a robust job market and works related to the 2020 Tokyo Olympics, would have a positive effect on its plywood business.
However, this would be subject to the group's ability to overcome the log supply constraint seen in the first quarter, it said.
WTK added that the group would continue to expand efforts to broaden market reach and customer base.
“With all these efforts, the group is cautiously optimistic of a modest growth in 2018,” it added.