MRCB targets large infrastructure jobs

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) expects its engineering, construction and environment businesses to contribute a larger share of revenue in 2018, as property development slows amid cooling demand in the market.

As of end of December, the group’s unbilled order book stood at RM5.2bil. The division currently has open tenders valued at RM2.755bil.

MRCB said it is placing greater emphasis on seeking infrastructure and long term fee based management projects.

“We have tendered for some very large infrastructure projects and we are eagerly awaiting the results,” group managing director Tan Sri Mohamad Salim Fateh Din said in a statement.

MRCB posted a net profit of RM167.6mil, or 6.56 sen a share for the full year ended Dec 31, 2017 (FY17) as revenue climbed to RM2.82bil. Revenue from the engineering, construction and environment division doubled to RM1.77bil, boosting its operating profit to RM92.7mil.

Its 50% joint venture MRCB George Kent Sdn Bhd, the project delivery partner for LRT 3 project, contributed RM15.2mil in after tax profit.

The group’s property division recorded a total sales of RM1.42bil last year, higher than its original target of RM1.2bil.

Despite the stronger sales, revenue from the division dropped by almost a third to RM858.7mil, while profit declined to RM176mil.