Posted by Jimmy Song > 2017-02-28 20:43 | Report Abuse

PETALING JAYA, 28 FEBRUARY 2017 – KUB MALAYSIA BERHAD (‘KUB’ or ‘the Group’) today released its financial results for the fourth quarter ended 31 December 2016 (‘Q4FY2016’) with revenue of RM131.3 million and profit after tax (‘PAT’) of RM7.1 million. The Group delivered a stellar full year financial performance for the year ended 31 December 2016 (‘FY2016’) with revenue of RM495.8 million, representing an increase of 14.7%, as compared to the previous financial year ended 31 December 2015 (‘FY2015’) of RM432.2 million. As a result of the better topline performance, improved operating margins and reduced earnings drag following the completion of disposals of loss-making subsidiaries, the Group’s full year PAT recorded a staggering increase of 136.3% from RM9.1 million in FY2015 to RM21.9 million for FY2016. The overall performance achieved is in line with KUB’s strategic plan of streamlining its businesses by focusing on core competencies and divesting non-core assets and non-performing subsidiaries. The Group has since successfully completed the disposals of A&W Restaurant (Thailand) Co Ltd and KUB Builders Sdn Bhd in late 2015 and KUB Precast Sdn Bhd in August 2016. The significant improvement in the financial results for FY2016 as highlighted above was contributed to several factors but mainly from the surge in earnings from the Energy sector as a result of the increase in sales volume of liquefied petroleum gas (‘LPG’), the upward revision in the Automatic Pricing Mechanism (‘APM’) structure as well as foreign exchange gains. Higher revenue was also recognised during the year from the Information and Communications Technology (‘ICT’) sector attributable to the RM42 million Automatic Fare Collection (‘AFC’) system contract secured from the Ministry of Transport as well as a RM16 million Telecommunications Tower construction contract awarded by the Malaysian Communications and Multimedia Commission (‘MCMC’). The Power sector reversed its substantial prior year losses and recorded a profit in the current year predominantly through higher revenue attained from several projects, the write-back of provision for doubtful debts and a reversal of liquidated ascertained damages for certain projects. As mentioned, the overall results were further enhanced by the absence of contributions from loss making subsidiaries which were disposed in FY2015 and FY2016. “Despite the challenging economic environment, we have managed to successfully execute part of our strategic plans and deliver a strong set of financials for FY2016. Our key sectors namely Energy, Agro and ICT will continue to be the growth drivers of the Group and we will focus our operational and expansion initiatives on these businesses moving forward.” said Datuk Abdul Rahim Mohd Zin, the President/Group Managing Director of KUB.