Quarterly Report For The Financial Period Ended 31 December 2011

Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Condensed Consolidated Income Statements
For The Forth/Cumulative Quarter Ended 31 December 2011 - Unaudited

Condensed Consolidated Statements Of Financial Position
As At 31 December 2011 - Unaudited

Review of Performance of the Company and its Principal Subsidiaries

IC Interpretation 12, Service Concession Agreements, requires revenues to be recognized during the construction of water treatment plants.

Accordingly, during the quarter under review, the Group achieved revenues of RM180.73 million, inclusive of RM75.46 million attributable to IC12 adjustments. Similarly, revenues for the preceding corresponding quarter, was RM151.51 million, inclusive of IC 12 adjustments of RM32.93 million.

In a similar manner, profit before taxation for the present quarter was RM12.24 million, inclusive of RM4.99 million of IC 12 adjustments as compared to preceding corresponding quarter of RM5.74 million with IC 12 adjustments of RM1.73 million.

Excluding the impact of IC12 adjustments, the Group recorded a higher profit before taxation for the quarter under review arising from cost saving of construction projects

For the cumulative quarter to-date, the Group recorded revenues of RM472.76 million, inclusive of RM75.46 million IC12 adjustments as compared to preceding corresponding cumulative quarter of RM549.87 million IC 12 adjustments of RM131.72 million.

In a similar manner, profit before taxation for the current cumulative quarter was RM29.08 million, inclusive of RM4.99 million of IC 12 adjustments as compared to preceding corresponding cumulative quarter of RM44.06 million with IC 12 adjustments of RM1.73 million.

Excluding the impact of IC12 adjustments, the Group recorded a lower profit before taxation for the cumulative quarter arising from higher tendering and distribution costs and loss on disposal of assets.

Prospects

In the Construction segment, the Group is replenishing its order book by aggressively tendering for the Engineering, Procurement, Constructions and Commissioning (EPCC) contracts locally and in the emerging market overseas.

In concession investments, the Group expects higher earnings contribution from China with the completion of two projects during the first half of next year.

In addition, the Group expects to conclude the acquisition of two new water projects in China during the 2nd quarter of next year.