Wednesday August 29, 2012
IJM eyes RM4bil jobs
By Leong Hung Yee
Company aims for 70% of civil works from West Coast Expressway
“We're hoping this (WCE) project will come soon. We are hoping to take on 70% of the civil works. It will boost our orderbook if we get the contracts. Our current book stands at RM3.7bil, of which RM3.4bil are from local projects,” he said at a briefing after its AGM.
IJM associate company Kumpulan Europlus Bhd's (KEuro) 80%-owned subsidiary, West Coast Expressway Sdn Bhd (WCE), had earlier received an approval letter from the Government for WCE to undertake the proposed privatisation of the construction of the 316-km highway at an estimated cost of RM7.07bil.
In July, KEuro chairman Datuk Abdul Hamid Mustapha was reported as saying the company was set to sign the concession agreement for the WCE within the next two months.
Teh said the stretch between Banting, Selangor, and Taiping, Perak, would take five years to be completed. The first three years of works will take place in the Selangor stretch.
He said KEuro would be the one awarding the contracts. “It (the signing of concession agreement) will probably be sometime in end-September. To me, everyday will be one day closer,” he added.
To a question, Teh said construction costs of WCE was RM6bil and the balance would be on other costs related to the project. He said the WCE project, if secured, would also benefit its industrial division as the construction would need building materials.
Additionally, Teh said the group was also looking at various opportunities such as the elevated highways proposed by Projek Lintasan Kota Holdings Sdn Bhd and the soon-to-be-developed Tun Razak Exchange (TRX).
“They (these projects) are sizeable projects for us to replenish our orderbook,” he said, adding that the company recently secured the V5 package (from Maluri to Plaza Phoenix) worth RM974mil from MRT Co.
On the New Pantai Elevated (NPE) highway extension, Teh said it had submitted an appeal to the Government after the later scrapped its plans for a proposed extendion of the NPE. He said it was still in discussion with the Government to revive the NPE extension project with a revised alignment.
Teh said the outlook for its other divisions such as property development, industrial and plantation would be good due to various strategy in place. He said the group was well poised for further growth.
“For the financial year ended March 31, 2012 (FY12), we posted a record performance with our pre-tax crossing the RM800mil mark,” he said.
In the first quarter ended June 30, IJM Corp posted a lower net profit of RM88.8mil, or 6.43 sen earnings per share against RM115.0mil, or 8.51 sen earnings per share in the same period last year.
Teh said the lower net profit was mainly due to an unrealised foreign exchange loss of close to RM34mil. Its revenue, however, was higher at RM1.04bil from RM1.03bil achieved a year ago.
Its plantation division, IJM Plantations Bhd's net profit fell to RM21.8mil for the first quarter ended June 30 from RM49.4mil last year. Its revenue for the quarter stood at RM109.6mil.
“The reduction in revenue was due to a decrease in sales volume,” the company said.
Due to the change in cropping pattern, fresh fruit bunches production was significantly less than the previous year. As a result, lower profit before taxation was achieved during the current quarter,” it said in the notes accompanying its results.
Meanwhile, IJM Land Bhd's net profit rose to RM51.1mil in the first quarter ended June 30 against RM40.7mil in the same period last year. Revenue, however, was marginally lower at RM251.2mil from RM252.3mil achieved last year.