KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) saw its pre-tax profit rose 32 per cent to RM63.4 million, in the first six months of the year, excluding gains of RM44.4 million arising from the disposal of non-core assets in the first half of 2016.
Group revenue in the first half ended June 30 2017 grew 55 per cent to RM1.28 billion.
MRCB group managing director Tan Sri Mohamad Salim Fateh Din deemed the results as “very pleasing”.
“The strong growth in revenue was driven by a 110 per cent rise in our engineering, construction and environment revenues,” he said in a statement today.
“Our property development and investment division recorded a 29 per cent increase in revenue, contributed by the award winning Sentral Residences and our Eastern Burwood Development in Melbourne.
With these two key property development projects completed now, and new projects still in the early phase of construction, revenues this year will continue to be dominated by our engineering, construction and environment division,” Salim added.
The property development division also recorded revenue and profits from its on-going property development projects, namely the 9 Seputeh mixed development in Jalan Klang Lama, the office towers at PJ Sentral Garden City and Menara MRCB in Putrajaya and recurring income from its remaining investment properties in KL Sentral CBD and Shah Alam of RM5.9 million during the period.
MRCB’s property projects, which are predominantly transit-oriented developments, have a gross development value of RM55 billion.
Its engineering, construction and environment division’s revenue was also earned from the ongoing construction of MRCB Land’s property development projects, and the construction of several mixed commercial buildings for clients in Johor, power transmission related construction projects across Peninsular Malaysia and other civil engineering projects in the Klang Valley.
Contribution from 50 per cent-owned MRCB-George Kent Sdn Bhd, the project delivery partner for the LRT 3 line, was still very low but will show much stronger growth in the second half of the year as the project progresses.
After RM409 million worth of recent contract wins, MRCB’s external client construction order book currently totals RM6.3 billion.