Cahya Mata Sarawak Berhad Posts Record Profit 6-month pre-tax profit up 33% to RM165 million

Kuching (Sarawak), Wednesday, 27 August 2014. Cahya Mata Sarawak Berhad (CMSB – 2852), the State’s leading infrastructure facilitator, has delivered a strong performance in the first six months of 2014 (1H14). The Group recorded a pre-tax profit (PBT) of RM164.84 million for 1H14, a 33% increase from the corresponding period of last year’s (1H13) PBT of RM123.63 million. The PBT reported for the second quarter ended 30 June 2014 (2Q14) has also remained robust at RM98.65 million, a 43% increase from the preceding year’s corresponding quarter’s (2Q13) PBT of RM68.81 million and a 49% increase as compared to PBT reported in the first quarter ended 31 March 2014 (1Q14) at RM66.19 million.

Year-on-year, the Group’s profit after tax and non-controlling interests (PATNCI) of RM105.01 million for 1H14 is 53% higher than RM68.74 million for 1H13. Earnings per share stood at 10.22 sen versus 7.00 sen* (adjusted for share split & bonus issue) from the corresponding six-month period of last year.

The main contributors towards the solid PBT earnings for 1H14 were the Cement, Construction & Road Maintenance and Property Development Divisions. The Cement Division recorded a PBT of RM58.77 million in 1H14, a 30% increase in comparison to 1H13’s PBT of RM45.19 million. The Property Development Division’s PBT grew to RM39.20 million in 1H14 in comparison to a loss before tax of RM585,000 in 1H13, which was attributable to the recognition of profits from sale of land and also the increased sale of properties. The Construction Materials & Trading and Construction & Road Maintenance Divisions also reported higher revenues and PBT compared to the corresponding six-month period of last year.

Commenting on the results, Dato’ Richard Curtis, Group Managing Director of CMSB said: “This has been an important quarter for us in terms of meeting performance against targets, which is a credit to our professional and prudent management and staff. Significant achievements have been recorded namely by the Cement, Construction Materials & Trading, Construction & Road Maintenance and Property Development Divisions, which saw robust rises year-on-year in PBT by 30%, 17%, 16% and 6800% respectively. The overall result for 1H14 should be viewed positively as it indicates that the Group is on track to deliver strong financial results for the full year of 2014.

“We continue to believe that CMSB is one of the best proxy listed investments for Sarawak’s accelerating economic growth. This is driven by the State’s plan to promote energy intensive industries under the Sarawak Corridor for Renewable Energy (SCORE) initiative and consequently from the infrastructure and related services required across the State. These two drivers are set to propel the State’s economy and GDP to new heights. CMSB’s 20% stake in the joint venture ferro silicon and manganese alloys smelter project with Australian listed OM Holdings Ltd and 40% stake in an integrated Phosphate Products complex with Malaysian Phosphate Additives Sdn Bhd and Arif Enigma Sdn Bhd – plus other investments being evaluated – are poised to significantly drive up shareholder value. Our prudent financial policies, healthy balance sheet, and strong corporate governance measures allows us to maximise our participation in the Sarawak growth story and position ourselves to ensure long-term sustainable growth”, said Dato’ Curtis.