KUB Malaysia Berhad kicks off the year with a strong quarter

KUB Malaysia Berhad kicks off the year with a strong quarter

PETALING JAYA, 30 MAY 2016 – KUB Malaysia Berhad (the Group) today announced its first quarter results for the financial year ending 31 December 2016 (‘Q1-FYE2016’) with revenue of RM126.7 million, up 25.8% from RM100.8 million in the corresponding quarter last year (‘Q1-FYE2015’).

The increase was mainly attributable to the revenue growth in the Group’s Information and Communications Technology (‘ICT’) sector by 386% from RM6.1 million in Q1-FYE2015 to RM29.8 million in the current quarter under review. This improvement was particularly driven by the RM42 million Automatic Fare Collection (‘AFC’) system for 53 Keretapi Tanah Melayu Berhad’s (‘KTMB’) commuter stations, a contract secured by the Group in October 2015 from the Ministry of Transport.

The Group reported a profit before tax (‘PBT’) and profit after tax (‘PAT’) of RM7.6 million and RM5.7 million respectively in Q1-FYE2016 as compared to the PBT of RM18.0 million and PAT of RM10.6 million in the corresponding quarter last year. This was contributed by the surge in the Energy division’s PBT to RM6.1 million in the current quarter compared to a loss of RM155,000 in the preceding year as a result of an increase in sales volume of liquefied petroleum gas (‘LPG’), the upward revision in the Automatic Pricing Mechanism (‘APM’) structure, improved dealer margin as well as foreign exchange gains.

The earnings for Q1-FYE2015 was significantly higher due to several exceptional items namely the goodwill settlement relating to an early release of a lease for its land in Petaling Jaya of RM9.0 million and the gain on disposal of assets held for sale of RM6.1 million. Excluding these exceptional items, the Group’s core earnings for Q1-FYE2016 is significantly better than the corresponding quarter in the previous year.

“Despite the challenging market environment, KUB’s performance for Q1-FYE2016 is very encouraging. We believe that the earnings visibility for the Group based on our core businesses is clear and we are optimistic about the Group’s future,” said Datuk Abdul Rahim Mohd Zin, the President/Group Managing Director of KUB.

He added, “Our strategic game plan is starting to show results and with a competent team in place, we are confident that we can execute our initiatives and bring the Group to the next level.”

During the Group’s Annual General Meeting held on 24 May 2016, the shareholders had approved a first and final single tier dividend for the financial year ended 31 December 2015 of 0.5 sen, which translates to a pay-out ratio of 35.5%.

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