KUALA LUMPUR (May 22): Taliworks Corp Bhd’s net profit in the first financial quarter ended March 31, 2018 (1QFY18) went up 10.5% to RM7.59 million from RM6.87 million due to higher bulk sales rate (BSR), and lower provision for discounting of trade receivables.

The rise in the quarterly net profit was also the result of more toll revenue coupled with lower operating cost from toll division while impacted by the share of loss from an associate.

Its earnings per share stood at 0.63 sen against 0.57 sen in 1QFY17, the group said in a filing with Bursa Malaysia today.

Quarterly revenue came in 14.5% higher at RM81.72 million versus RM71.35 million last year after taking into account the impact from the provision for discounting.

The board declared a single-tier dividend of two sen, amounting to RM24.19 million for the financial year ended Dec 31, 2018, and payable on July 13, 2018. The ex-date is June 13 and the entitlement date is June 18.

In a separate statement, Taliworks said the quarterly profit growth was due to the rise in BSR to 44 sen per cubic metre (m3) from 42 sen/m3 for Sungai Harmoni Sdn Bhd, and to RM2.24/m3 from RM2.15/m3 for Taliworks (Langkawi) Sdn Bhd starting Jan 1, 2018.

“The lower rehabilitation and maintenance cost for the water treatment, supply and distribution division, along with the higher toll revenue, lower depreciation, repairs and maintenance have also contributed to the overall improved profit after tax,” the company added.

Taliworks executive director Datuk Ronnie Lim said the group’s overall revenue performance is a testament to its stable infrastructure businesses.

It is constantly exploring potential earnings accretive opportunities to provide new recurring and stable source of cash flow to create higher value for its shareholders for the coming years.

“We will continue to re-align our business strategies by focusing on mature, operational cash-generating utilities/infrastructure businesses to further enhance our businesses’ performance,” he added.

Regarding the Selangor water restructuring deal, Lim hoped it would be resolved after the State said the Selangor water industry restructuring exercise would be given priority.

Taliworks said the receivables owed by Syarikat Pengeluar Air Sungai Selangor Sdn Bhd to the group was RM638 million as at March 31, 2018.

Looking forward in the construction segment, the group has three on-going projects and will continue to tender for more infrastructure projects to boost its order book.

It plans to continue to focus on mature operational cash-generating utilities/infrastructure businesses with a view of generating new income stream and a recurring and stable source of cash flow to support its dividend policy.

Taliworks shares closed up half sen or 0.55% at 91 sen, valuing it at RM1.1 billion.