AZRB'S NET LOSS NARROWS TO RM68.81 MLN IN FY21, BENEFITS FROM HIGHER CPO PRICE

KUALA LUMPUR, Sept 30 -- Ahmad Zaki Resources Bhd’s (AZRB) net loss narrowed to RM68.81 million in the financial year ended June 30, 2021 (FY2021) from RM106.71 million in FY2020 due to a lower loss contribution from the plantation division, which benefited from the higher volume of palm product sales and higher commodity prices.

Revenue, however, fell to RM846.98 million from RM966.18 million previously resulted from slower construction and engineering division that affected the amount of recognisable revenue but compensated by higher revenue recorded in the plantation division, it said in a filing with Bursa Malaysia today.

Moving forward, it said the company intended to leverage on its position as a reputable builder of distinction to tap into any suitable opportunities on offer in the sector.

“In the oil and gas division, the division’s Tok Bali Supply Base is now at its last stage of preparations in anticipation of an elevated level of activities, in particular drilling operations, of which the division is in final negotiations with the relevant parties to formalise their move into the supply base in the coming months,” it said.

It said the division expected such operations to commence in the next financial year and is able to contribute positively to the company from thereon.

On the engineering and construction division, it said AZRB has RM831 million outstanding orderbook as at June 30, 2021 and is focusing on sourcing for avenues to replenish the orderbook whilst the current outstanding balance would be able to sustain the company for the upcoming year.

On the plantation division, it said the high crude palm oil and commodity prices, in general, augured well for the division.

“With the palm oil mill’s capacity utilised to its fullest potential, the division is confident that production and sales can be maximised to capitalise on the current higher prices of palm products, to continue the division’s up-trend of late,” it said.

On the concession division, it said the company is encouraged by the contribution from the division, which continued to steadily provide positively to the company from its long-term concession which would last up to 2038.

-- BERNAMA