UEM EDGENTA POSTS NET LOSS OF RM19.01 MLN IN Q3

KUALA LUMPUR, Nov 26 -- UEM Edgenta Bhd fell into the red with a net loss of RM19.01 million in the third quarter ended Sept 2020 (Q3 2020) compared with a net profit of RM17.27 million in the same quarter last year.

Revenue also fell to RM482.91 million from RM587.64 million previously, the asset management and infrastructure solutions company said in a filing with Bursa Malaysia yesterday.

Revenue from infrastructure solutions decreased by RM266.1 million mainly from less pavement work done for expressways during the movement restriction period due to the COVID-19 pandemic.

“The asset consultation division also recorded lower revenue from lower consultancy work done during the period,” it said.

Meanwhile, revenue from asset management increased by RM27.4 million due to more healthcare support work from contracts secured in Singapore and Taiwan by the healthcare support division.

The group also recorded a loss before tax RM15.15 million in Q3 2020 compared with a profit before tax of RM25.9 million previously, as asset management results declined by RM44.7 million primarily from the healthcare support division due to margin contractions experienced by its commercial business in Singapore and Taiwan, coupled with higher operating costs in its Malaysian concession operations.

“Infrastructure solutions posted lower results by RM39.7 million from lower revenue and impairments made on receivables.

“Impairment of completed property inventories totalling RM50 million was recognised during the period by the property development division,” it said.

In a separate statement, managing director and chief executive officer Syahrunizam Samsudin said the company’s recovery efforts had been hampered by higher operating costs to deliver essential services at the front lines.

“We provide healthcare support services to clients in Malaysia, Singapore, Taiwan and India, and we are committed to delivering our services and ensure the healthcare systems in all these countries are able to operate uninterrupted and at the highest standards at all times in the fight against COVID-19,” he said.

Despite the difficult operating conditions in Q3 2020, the company’s healthcare support division has added Pantai Hospital Cheras, Melaka’s Mahkota Medical Centre and Regency Specialist Hospital in Johor, amid a growing list of reputable new clients which also includes Alexandra Hospital in Singapore, Chang Gung Memorial Hospital and Micron Technology, Inc. in Taiwan.

According to Syahrunizam, UEM Edgenta was also focused on empowering its technology-abled solutions for better service offerings and setting firm footing, future-ready business fundamentals in place once the newly announced vaccine is available and the economy is upbeat again post-COVID-19.

-- BERNAMA