KUALA LUMPUR – Malaysian Resources Corporation Berhad (MRCB) recorded a revenue of RM1,274.7 million and a profit before tax of RM69.6 million for the nine months ending September 30, 2024, compared to RM1,845.3 million and RM54.5 million, respectively, in the corresponding period in 2023.
The decline in revenue in 2024 compared to the corresponding period in 2023 was due to lower contributions from the Property Development & Investment Division after the completion of two major property development projects in 2023, and lower revenue recognition from the LRT3 project as it nears completion.
However, profit before tax, rose 28% in the first 9 months of 2024 compared to the corresponding period in 2023, due to higher profit recognition in the Engineering, Construction & Environment Division.
Although revenue in the Engineering, Construction & Environment Division declined 26% to RM984.8 million in the nine months to September 30, 2024, compared to the corresponding period in 2023, the division recorded a 65% increase in operating profit to RM144.9 million.
The division’s revenue was largely contributed by the RM11.4 billion LRT3 project and the RM380 million Muara Sg Pahang Phase 3 flood mitigation project, which achieved 97% and 49% construction progress, respectively.
Future growth for the division will be driven by significant pending project awards, such as the redevelopments of Stadium Shah Alam and Kuala Lumpur Sentral Station and the construction of five additional stations and other related infrastructure works for the LRT3 project.
The Property Development & Investment Division recorded a 49% revenue decline to RM234.5 million in the nine months ended September 30, 2024, compared to the corresponding period in 2023 and an operating loss of RM16.8 million, reflecting the completion of large development projects in 2023 and the Group’s new projects still being in their initial development phases, when there is still no revenue to recognise.
The revenue that was recognised was largely from the sales of unsold units from the Group’s completed developments Sentral Suites, VIVO 9 Seputeh, and TRIA 9 Seputeh.
The division had cumulative unbilled sales from new projects of RM630.5 million as of September 30, 2024, the bulk of which came from the Group’s VISTA residential development in Gold Coast, Australia, which has recorded strong sales, with 53% of all available units sold as of September 30, 2024. — November 27, 2024