CIVIL engineering specialist Sarawak Consolidated Industries Bhd has set its eyes on domestic project management to achieve a satisfactory performance for its FY6/2022.
While it expects business sentiment in the country to recover as a bigger portion of the population is vaccinated and with the COVID-19 pandemic abating, the company remains cautious on the economic outlook, according to its group managing director/CEO Rosland Othman.
“We will continue to take prudent measures to ensure business continuity and sustainability,” he commented following the release of the company’s latest financial performance.
SCIB posted a net loss of RM19.57 mil for its 6Q FY2021 ended June 30, 2021 on the back of a revenue of RM161.5 mil mainly due to additional provisions for project cost from the re-positioning of business strategy and an impairment loss of RM14.4 mil.
There is no comparison for the corresponding quarter of the previous financial year as SCIB changed its financial period end to June 30, 2021 from the financial year end of Dec 31, 2020 on May 24 this year.
On a segmental basis, the construction/EPCC (engineering, procurement, construction and commissioning) division continued to be the largest contributor to revenue at RM161.5 mil followed by the manufacturing division which recorded revenue of RM20 mil.
For the cumulative 18 months under review, SCIB recorded revenue of RM852.8 mil with net earnings of RM55.3 mil. Year-to-date, SCIB’s order book value stood at RM1.6 bil which translates into healthy earnings visibility up to 2030.
“We have the advantage of being the largest precast concrete and industrialised building system (IBS) manufacturer in East Malaysia with synergies for our construction activities,” Rosland pointed out.
“Our advantage is the three integrated factories and wharf facility for shipments across Borneo to supply up to 500,000 tonnes of concrete products annually”.
Among projects that SCIB has successfully secured are mixed development projects in Sarawak, 1Malaysia Housing Programme (PR1MA) in Kelantan, the Malaysian Civil Servants Housing Programme (PPAM) in Perak, road maintenance project in Terengganu as well as the establishment of solid waste transfer station, medical equipment supplies and commissioning project for a specialist hospital in Johor.
At 10.08am, SCIB was down 3.5 sen or 7.87% to 41 sen with 11.94 million shares traded, thus valuing the company at RM216 mil. – Oct 1.
