Posted by Jimmy Song > 2017-05-22 20:27 | Report Abuse

PETALING JAYA, 22 MAY 2017 – KUB MALAYSIA BERHAD (‘KUB’ or ‘the Group’) today announced its financial results for the first quarter of its financial year ending 31 December 2017 (‘Q1 FY2017’) with revenue of RM148.6 million, a 21% increase compared to its corresponding quarter of its previous fiscal year (‘Q1 FY2016’). The Group also reported a pre-tax profit (‘PBT’) of RM10.5 million and profit after tax (‘PAT’) of RM8.0 million, surpassing the Q1 FY2016 results by 18% and a staggering 41% respectively. KUB’s commendable start to the financial yearwas made possible by the strong performances ofthe Group’s Energy and Agro sectors. The Energy sector’s topline grew by 48% to RM110.6 million as a result of the higher average contract price and improved sales volume arising from the increased demand from its industrial and bulk segment customers. The higher revenue supported the overall increase in the sector’s PBT by 10% to RM6.7 million despite the dip in operating margins. The Agro sector meanwhile, recorded revenue of RM12.5 million and PBT of RM2.9 million, a resounding 105% and 96% increase respectively as compared to the previous year’s corresponding quarter. The significant improvement was primarily attributable to higher average crude palm oil prices, a rise in crop production resulting from the increased estate harvesting area as well as the drop in the total cost of production. The Group’s overall results were further boosted by the improved performance from the Power and Food sectors as well as the absence of contribution from loss making subsidiary, KUB Precast Sdn Bhd which was disposed off in the previous financial year. Commenting on the Group’s financial results, KUB’s President/Group Managing Director, Datuk Abdul Rahim Mohd Zin said, “We are pleased to kick-off the financial year with impressive first quarter earnings. Our Energy sector continues to be the Group’s main profit driver, and with our plans set in motion to enhance supply and distribution capacity we are confident that the performance momentum will continue.” “We are also encouraged by the results of our Agro sector particularly with the rehabilitation and cost management efforts to improve yields. These initiatives have begun to bear fruit and reflect positively in our numbers. I’m expecting the sector to deliver decent earnings growth going forward as the losses from our mill in Mukah are expected to narrow once it becomes operational at the end of next month.” More... -2- He added “Our ICT sector however, experienced a challenging quarter with a sharp drop in the toplineas compared to last year. Nevertheless, we will continue to persistently bid for more high value contracts going forward to replenish our order book.” On the proposed acquisition of a brownfield oil palm plantation land in Sungai Kinabatangan, Sabah measuring approximately 1,534 hectares (3,791 acres) by its wholly owned subsidiary KUB Malua Plantation SdnBhd (formerly known as KUB Oil and Gas SdnBhd) which was announced on 19 April 2017, “The proposed acquisition is on track and we are currently in the midst of fulfilling the Conditions Precedent in the Sale and Purchase Agreement. We target to present this transaction to our shareholders for approval sometime in July”, said Abdul Rahim. Subject to the shareholders’ approval at the forthcoming Annual General Meeting to be held on 23 May 2017, KUB has recommended a first and final single tier dividend in respect of the financial year ended 31 December 2016 (“FYE2016”) of 1.0 sen per share. This translates to a total dividend payout of RM5.6 million, which translates to a payout ratio of 25% of the Group’s PAT for FYE2016.