Bina Puri has net loss of RM9.16m for Q3 on extra costs due to MCO-related project delays

Bina Puri has net loss of RM9.16m for Q3 on extra costs due to MCO-related project delays

PETALING JAYA: Bina Puri Holdings Bhd’s posted a net loss of RM9.16 million for its third quarter ended March 31, due to additional costs incurred from the delay in the completion of existing projects with extension of time as a result of the two-week shutdown from the implementation of the movement control order (MCO).

Quarterly revenue came in at RM93.18 million, on lower performance from all operating segment due to disruption of operating environment.

Following the change in the financial year end from Dec 31 to June 30, the group’s performance for the current interim period and the cumulative period are not comparable to the comparative period.

In the nine-month accumulative period, the groupregistered a net loss of RM8.55 million and a revenue of RM310.51 million.

According to Bina Puri’s Bursa filing, its construction division reported a loss of RM18.3 million for the nine-month cumulative period ended March 31, due to additional costs incurred for existing completed projects which are pending finalisation of accounts and forex losses from a weakening ringgit against the US dollar.

Its property division saw a profit before tax of RM24 million, while its power supply division incurred a loss of RM1.5 million for the period.

In regard to its prospects, Bina Puri expects the business environment to be challenging, which would affect its rental and hospitality segments, but has adopted an aggressive marketing strategy to ensure occupancies are optimised.

Its construction division is looking for opportunities to increase its order book through participating in tenders both locally and overseas. The current value of order book in progress is approximately RM720 million.

The group’s property development division is planning more launches this year, and it is also looking into participating in an integrated resort development project in Pahang through a corporate exercise.

In addition, it is exploring business ventures in solar and gas power supply both locally and overseas, Bina Puri elaborated that it strives to explore new markets to broaden its revenue and clientele base and expects to perform satisfactorily in 2020.

source https://www.thesundaily.my/business/bina-puri-has-net-loss-of-rm916m-for-q3-on-extra-costs-due-to-mco-related-project-delays-BX2606157