KUALA LUMPUR: UEM Edgenta Bhd’s net profit plunged 79.1 per cent to RM67.73 million in the fourth quarter (Q4) ended December 31, 2018 from RM324.81 million recorded in the same quarter last year.
The lower profit was due to the absence of one-off gain during the quarter.
In the same quarter of 2017, the group recognised a one-off RM270.8 million gain from the disposal of Opus International Consultants (OIC).
UEM Edgenta managing director and chief executive officer Datuk Azmir Merican said despite the disposal of OIC in December 2017, the group’s results had surpassed last year’s performance.
“UEM Edgenta’s full-year profit after tax and non-controlling interest of RM148.2 million was higher than last year’s profit of RM143.3 million when OIC’s share of profits was included,” he said in a statement.
Group revenue for the fourth quarter of 2018 eased 3.9 per cent to RM647.35 million from RM672.31 million.
For the full-year, UEM Edgenta's net profit dropped 64.6 per cent to RM148.24 million from RM418.19 million, while revenue increased 2.9 per cent to RM2.18 billion from RM2.12 billion.
In a filing to Bursa Malaysia on Monday, the property developer said over the course of financial year 2018, it had implemented operational excellence initiatives such as the “Lean” programme to build capabilities across the company via process improvements and training, as well as technology and innovation-centric programmes to tackle high-impact operational areas, all of which have started to bear fruit.
UEM Edgenta will continue to optimise its profit margins via such initiatives.
The group said it had maintained its robust balance sheet with a net cash position of RM70.1 million as at end-2018, attributable to strong cashflow from operations of RM209.3 million last year.
UEM Edgenta is also able to maintain its gross gearing ratio at a conservative 0.35 times.
Azmir said the group remained optimistic of its prospects in healthcare and infrastructure and as the industry leader in these sectors in the countries it operates, it will focus on protecting its market share, as well as expand and deepen its value chain offerings.
UEM Edgenta declared a single tier second interim dividend of 8.0 sen per share for 2018, payable on May 9 this year.