WZ Satu posts RM7.29mil net loss in Q3

PETALING JAYA: WZ Satu Bhd slipped into a net loss of RM7.29mil for the third quarter ended May 31, 2018, as its revenue declined and operating expenses increased.

Consequently, the civil engineering and construction company posted a loss per share of 1.57 sen during the quarter in review. This compared with a net profit of RM8.03mil, or 2.30 sen per share in the same period last year.

WZ Satu’s revenue fell 13.4% to RM122.94mil in the third quarter from RM141.91mil in the previous corresponding quarter.

It said the decrease in group revenue “was mainly due to lower revenue from the oil and gas segment and a loss of revenue contribution from Weng Zheng Trading Sdn Bhd in this quarter arising from its disposal in the preceding quarter included under remaining segments”.

WZ Satu attributed its weak results for the quarter in review to a pre-tax loss recorded in the three key segments of the group compared to a pre-tax profit recorded in the corresponding quarter.

“The civil engineering and construction; oil and gas; and mining segments registered a pre-tax loss of RM4.7mil, RM2.8mil and RM800,000, respectively, for the current quarter.

“This is in comparison to a pre-tax profit RM700,000, RM4.1mil and RM2.6mil registered in the corresponding quarter, respectively,” it said.

For the nine-month cumulative period, WZ Satu posted a net loss of RM6.57mil, or 1.41 sen per share, compared with a net profit of RM21.86mil, or 6.30 sen per share, previously.

The group’s revenue fell 6.1% to RM384.93mil in the nine-month period from RM410.07mil in the same period last year.

WZ Satu said while its current order book of RM963mil would keep the group busy in the coming financial year and beyond, the uncertainty on the commencement date of a project could affect its results.