Fron­tken earn­ings soar on im­proved re­sults by sub­sidiaries

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Fron­tken Corp Bhd’s net profit for the third quar­ter ended Sept 30, 2018 jumped 65% to RM15.19mil from RM9.19mil in the pre­vi­ous cor­re­spond­ing pe­riod, mainly due to im­proved per­for­mances by its sub­sidiaries in Tai­wan, Sin­ga­pore, Malaysia and the Philip­pines.

In a fil­ing with Bursa Malaysia, the semi­con­duc­tor firm said its wholly-owned sub­sidiary Fron­tken (Sin­ga­pore) Pte Ltd had dis- posed of its en­tire 49% stake in a Thai­land­based as­so­ciate com­pany, which re­sulted in a gain on dis­posal of RM650,000.

Rev­enue in the third quar­ter in­creased to RM85.86mil from RM78.62mil a year ear­lier.

“As a re­sult of the growth of the semi­con­duc­tor busi­ness, the group’s sub­sidiaries in Tai­wan and Sin­ga­pore achieved an im­proved per­for­mance of 3.8% and 10.7%, re­spec­tively, com­pared to the pre­ced­ing year’s cor­re­spond­ing quar­ter.

“Our sub­sidiaries in Malaysia and the Philip­pines also recorded bet­ter per­for­mance due to new works se­cured in light of re­cov­ery in the oil and gas in­dus­try,” it said.

For the nine-month pe­riod ended Sept 30, 2018, Fron­tken’s net profit grew to RM33.57mil from RM20.03mil in the pre­vi­ous cor­re­spond­ing pe­riod, while rev­enue im­proved to RM238.55mil from RM216.20mil pre­vi­ously.

On its prospects, Fron­tken said it an­tic­i­pated over­all busi­ness con­di­tions for the re­main­ing three months of its cur­rent fi­nan­cial year to re­main pos­i­tive.

“To that end, the group is cau­tiously op­ti­mistic that its per­for­mance for the rest of the year will be sat­is­fac­tory.

“The group will also con­tinue to be vig­i­lant in its cost man­age­ment and strive to im­prove on its ef­fi­ciency.

“Our pri­or­ity will be to con­tinue fo­cus­ing on the qual­ity of ser­vices and ef­fi­cien­cies so as to main­tain com­pet­i­tive­ness,” it said.

Fron­tken has de­clared an in­terim sin­gle-tier div­i­dend of 0.7 sen per share for the fi­nan­cial year end­ing Dec 31, 2018.

“The en­ti­tle­ment and pay­ment dates will be an­nounced at later,” it said.

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