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Quarterly Report For The Financial Period Ended 31 December 2017

Financials Archive

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The Figures Have Not Been Audited

Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income

Remarks To Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income:

Condensed Consolidated Statement Of Financial Position

Comparison between the current quarter and the immediate preceding quarter

The core revenue drivers of the Group are:

  • trade facilitation & B2B business
  • OGPC's energy equipment & maintenance
  • Vehicle Entry Permit and Road Charge ("VEP & RC") operations & maintenance services

The core revenue drivers of the Group are:

  • The recognition of RM8.5 million, being the final billing for the implementation of the VEP & RC system
  • The progress billing on implementation of portable container system ("PCS") at selected fisherman ports
  • Work done on an integrated ICT solution and maintenance contract from Majlis Agama Islam Selangor ("MAIS")

The Group's profitability remains attractive with a quarterly PBT of RM18.4 million. The Group income performance for the current quarter also improved in tandem with the improving crude oil price in the second half of 2017.

Detailed analysis of the performance for the current quarter and year-to-date

Quarter ended 31 December 2017 compared with quarter ended 31 December 2016

Overall, the Group recorded lower revenue in current year quarter by 8.6% as compared to preceding year corresponding quarter. Included in the preceding year corresponding quarter was an one-off system integrated project of RM7.0 million for the Jabatan Kerja Raya Malaysia ("JKR") and the progress billing of RM17.0 million for the implementation of VEP & RC system at Johor and Singapore boarder. The Group’s IT segment continued to benefit from the growth in trade facilitation and B2B business, the new recurring income from the VEP & RC operations and maintenance services and e-Work permit have further enhanced the Group's profitability.

The Group recorded a PBT of RM18.3 million in current quarter as compared to the preceding year corresponding quarter of RM28.4 million. The main contribution to the hike in preceding year corresponding quarter was attributable to share of result of associate company, Ping Petroleum Limited (“Ping”) of RM25.2 million, of which RM23.5 million was resulted from the downward revision of the rate of the Supplementary Charge pursuant to the United Kingdom's Financing Bill 2016 effective from 15 September 2016.

Year-to-date ended 31 December 2017 compared with year-to-date ended 31 December 2016

The Group recorded RM203.9 million in revenue for the current year-to-date as compared to the preceding year of RM178.5 million. The overall 14% higher revenue in the current year-to-date was mainly contributed by Energy segment, namely full consolidation of OGPC's result (included the partial recognition of revenue from PCS contract) and progressive billing of oilfield drilling services under the umbrella contract to PETRONAS Carigali Sdn Bhd.

The IT segment recorded revenue of RM140.2 million was mainly attributable to the recurring income from the VEP & RC operations & maintenance services, trade facilitation and B2B business, includes with the revenue from e-Work permit. Included in the previous year revenue was an one off system integration project of RM17.8 million for JKR.

excluding the one-off share of pre-acquisition gain of excess fair value of RM88.9 million resulted from the completion of acquisition in PING Petroleum Limited in the preceding year. The Group’s recurring revenue stream from Information Technology segment and share in operational net profit from an associate company have continued to contribute to the Group’s profitability.

Prospects for 2018

The Group's knowledge, expertise and operational know how in IT and eServices, and Energy industry have given a strong footing for the Group to broaden its services and product range beyond its current market and geographical segment.

The Group will continue to build on its business sustainability by exploring opportunities that leverage on its existing business building blocks while focusing on the implementation of planned initiatives.

Barring any unforeseen circumstances, the Group expects to deliver positive results for the year 2018.