KUALA LUMPUR: Malaysian Resources Corp Bhd’s (MRCB) net profit slipped to RM6.03 million the fourth quarter ended December 31, 2019 from RM26.4 million a year ago.
Group revenue stood at RM471.6 million compared to RM372.7 million previously.
The better performance from the engineering, construction and environment divisions contributed to increased revenue,” MRCB said.
The group declared a dividend of one sen per share, totaling RM44 million, payable on May 20.
For the full-year year, MRCB’s net profit decreased 76.6 per cent to RM23.7 million from RM101.17 million previously.
Group revenue stood at RM1.3 billion.
“The lower revenue recorded in 2019 was due to the group’s significant high-rise residential property projects being in their early phase of construction, when revenue recognition is very minimal.
“Income recognition from the LRT3 project was also considerably lower as a result of its re-timing and remodelling from a PDP to a fixed price turnkey project,” it said.
The property development and investment division recorded a lower revenue of RM566.7 million compared to RM1.0 billion in 2018, due to the one-off land sales recorded in the previous year.
“The main revenue contributors were the Sentral Suites, 9 Seputeh and MyIPO office tower developments, as well as the completed MBSB office tower, Sentral Residences and Kalista Park Homes projects,” it said.
“Revenue will continue to be progressively recognised in line with construction progress, with Sentral Suites and TRIA at 9 Seputeh, targeted to reach 50 per cent and 40 per cent construction completion respectively by the end of 2020,” it added.
Meanwhile, the engineering, construction and environment division recorded revenue of RM679.5 million and in 2019.
Revenue was mainly contributed by MRT Line 2 Package V210, DASH Package CB2, EPF Headquarters at Kwasa Sentral and SUKE Expressway Package CA2.
Group managing director Imran Salim said with RM1.6 billion of unbilled property sales yet to be recognised, the group expected stronger revenue recognition in 2020 supported by good construction progresses.
“Moving forward we will leverage on our new MRCB Building System, a proprietary modular technology which will enhance our product delivery, lower our dependence on labour and significantly reduce construction time, resulting in improved margins in the long run,” said Imran.