WCE revenue soars on higher toll collection

“We understand that the Finance Ministry has registered the highway as a priority project and the Economic Planning Unit will study its implementation,” according to Saarani.

Meanwhile, Felix noted that WCE’S financials have been improving in line with the opening of more sections of the West Coast Expressway.

In the first nine months of the financial year ended March 31, 2024 (9M24), the highway’s toll collection hit a new high at Rm39.9mil, or 23% higher year-on-year (y-o-y).

The higher toll collection, coupled with the increased construction work activities under the toll concession segment, lifted the group’s total revenue by nearly 40% y-o-y to Rm524.2mil in 9M24.

WCE reported an operating profit of Rm24.59mil, which increased by more than four-fold than the previous corresponding period.

However, the group registered a net loss of Rm72.98mil in the nine-month period, mainly due to the interest cost for completed sections of Rm114.2mil.

In addition, net loss was also attributable to cessation of share of results from associates upon the completion of disposal in the previous financial year.

“While the group anticipates initial losses in the early years of toll operations due to the cessation of interest expenses capitalisation for completed sections, the staggered opening of the remaining sections is expected to boost sectional toll revenue and is poised to improve the group’s future financial performance positively in term of cash flows and operating results,” WCE said in an earlier statement.

With a market capitalisation of Rm2.73bil, WCE is currently the fourth-largest listed construction company on Bursa Malaysia.

The stock rose by 5.17% yesterday, closing at 91.5 sen. About 6.5 million shares changed hands.

WCE is 26.65% owned by conglomerate IJM Corp Bhd.