Taliworks posts lower net profit in Q3

PETALING JAYA: Taliworks Corp Bhd recorded a net profit of RM16.18 million for the third quarter ended Sept 30, a 77.7% drop from RM72.64 million in line with a lower quarterly revenue and an additional accrual of RM587,000 for termination benefits and other payments to employees of Taliworks (Langkawi) Sdn. Bhd as well as an additional provision of RM500,000 of restoration costs to restore the water treatment plants and water distribution system following the expiry of the Langkawi water supply privatisation contract with the Kedah state government.

Revenue came in at RM82.63 million, from RM93.62 million previously, mainly attributable to the lower revenue from all the business segments particularly from the water treatment, supply and distribution business.

For the cumulative period, the group saw a net profit of RM43.79 million on a revenue of RM242.99 million, from RM95 million and RM271.57 million respectively.

It also declared a third interim single-tier dividend of 1.65 sen per share, amounting to approximately RM33.3 million, which shall be paid on Dec 31, 2020.

Looking ahead, executive director Datuk Ronnie Lim said the group will monitor the development of the pandemic, continuously assess the impact on its business operations and implement the appropriate mitigation strategies

“Amid the pandemic, we remain committed to our strategy to focus on mature operational cash-generating utilities/infrastructure businesses. This is to create new income stream and provide a recurring and stable source of cash flow to deliver sustainable returns to our loyal shareholders,” he said.