Our website is made possible by displaying online advertisements to our visitors.
Please consider supporting us by disabling your ad blocker.

Pacific & Orient Q2 net loss narrows to nearly RM2mil

TheStar Fri, May 24, 2019 08:00am - 4 months ago


PETALING JAYA: Insurer Pacific & Orient Bhd (P&O) has narrowed its loss in the second quarter ended March 31 to RM1.97mil compared with RM8.23mil a year ago, and expects the general insurance business to remain challenging due to intense competitive pressures and the progressive impact of tariff liberalisation.

The company recorded a pre-tax profit of RM2.78mil compared with a pre-tax loss of RM2.86mil in the corresponding period last year.

Revenue increased 2.8% to RM85.54mil from RM83.22mil.

Loss per share was at 0.73 sen compared with 3.30 sen previously. Despite the losses, it has declared an interim dividend of 1.25 sen a share.

P&O said its revenue from its insurance segment increased by RM2.46mil to RM82.20mil primarily due to higher gross earned premium. However, pre-tax profit declined to RM11.29mil from RM11.92mil a year ago, mainly due to higher marketing and promotional expenses.

As for its information technology (IT) segment, revenue from external parties increased by RM156,000 to RM2.94mil. Its pre-tax loss was lower at RM3.38mil compared to RM3.83mil before, mainly due to lower unrealised foreign-exchange losses of RM803,000.

In the first half, its net loss came in at RM8.89mil compared with RM17.67mil in the previous corresponding period. Revenue rose 2% to RM163.10mil from RM160.46mil.

P&O said the group’s cash and cash equivalents as at March 31, 2019 stood at RM58.03mil.

“The net cash generated from operating activities amounted to RM27.88mil as a result of improved collections from reinsurance and other receivables. The net cash generated from investing activities of RM6.47mil was due to the disposal of investments.

“The net cash used in financing activities of RM34.97mil was principally for payment of dividends,” it said.

On the outlook, P&O said the general insurance business remained challenging due to intense competitive pressures and the progressive impact of tariff liberalisation.

“To mitigate this, the group would continue with its investment in digital technologies to adopt and implement new innovative and value-added solutions to its customers.

“The IT segment also remains extremely competitive, but the board expects the long-term growth in this segment to remain stable, with the group’s focus being on maintaining high-quality service to clients,” it said.

   

Revenue increased 2.8% to RM85.54mil from RM83.22mil.

Loss per share was at 0.73 sen compared with 3.30 sen previously. Despite the losses, it has declared an interim dividend of 1.25 sen a share.

P&O said its revenue from its insurance segment increased by RM2.46mil to RM82.20mil primarily due to higher gross earned premium. However, pre-tax profit declined to RM11.29mil from RM11.92mil a year ago, mainly due to higher marketing and promotional expenses.

As for its information technology (IT) segment, revenue from external parties increased by RM156,000 to RM2.94mil. Its pre-tax loss was lower at RM3.38mil compared to RM3.83mil before, mainly due to lower unrealised foreign-exchange losses of RM803,000.

In the first half, its net loss came in at RM8.89mil compared with RM17.67mil in the previous corresponding period. Revenue rose 2% to RM163.10mil from RM160.46mil.

P&O said the group’s cash and cash equivalents as at March 31, 2019 stood at RM58.03mil.

“The net cash generated from operating activities amounted to RM27.88mil as a result of improved collections from reinsurance and other receivables. The net cash generated from investing activities of RM6.47mil was due to the disposal of investments.

“The net cash used in financing activities of RM34.97mil was principally for payment of dividends,” it said.

On the outlook, P&O said the general insurance business remained challenging due to intense competitive pressures and the progressive impact of tariff liberalisation.

“To mitigate this, the group would continue with its investment in digital technologies to adopt and implement new innovative and value-added solutions to its customers.

“The IT segment also remains extremely competitive, but the board expects the long-term growth in this segment to remain stable, with the group’s focus being on maintaining high-quality service to clients,” it said.








Related Stocks

ORIENT 6.590
P&O 0.975
PICORP 0.115

Comments

Login to comment.