Taliworks 1Q net profit up 37%, declares 1.65 sen dividend

KUALA LUMPUR (May 13): Taliworks Corp Bhd's net profit rose 36.5% to RM15.91 million for the first quarter ended March 31, 2020 (1QFY20) from RM11.65 million a year ago, on lower operating costs and higher other operating income.

The higher net profit for 1QFY20 was partially offset by a higher share of losses from associates and lower revenue.

Earnings per share for the quarter came in higher at 0.79 sen compared with 0.58 sen for 1QFY19.

Quarterly revenue fell 5.2% to RM84.25 million from RM88.87 million a year ago, following the completion of the Langat 2 – Package 7 balancing reservoir project and the Ganchong water treatment works project.

“Additionally, revenue from the toll business decreased due to the travel restrictions imposed under the Movement Control Order (MCO) since March 18, 2020,” it said in a filing with Bursa Malaysia today. Taliworks owns the concession for the New North Klang Straits Bypass Expressway.

Nevertheless, the group declared a first interim dividend of 1.65 sen per share totalling RM33.26 million for the financial year ending Dec 31, 2020, payable on June 19.

Taliworks executive director Datuk Ronnie Lim, in a separate statement, said the group expects the Covid-19 pandemic to affect its financial performance despite its businesses being predominantly categorised as essential.

“However, our water business segment will continue to contribute positively to the group and will be the main business supporting our overall earnings,” he said.

“Going forward, we maintain our strategies to focus on mature operational cash-generating utilities/infrastructure businesses to continue delivering long-term consistent results to our shareholders,” he added.

Shares in Taliworks rose 1.5 sen or 1.84% to close at 83 sen today, valuing the group at RM1.67 billion.