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Quarterly Report For The Third Quarter Ended 30 September 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 Group recorded total revenue of RM49.5 million in current quarter as compared to the immediate preceding quarter of RM49.1 million. The revenue in current quarter was driven from the growth in the Group's IT segment mainly the trade facilitation business, e-Work Permit and recurring income from operation & maintenance from the Vehicle Entry Permit and Road Charge ("VEP & RC") system.

However, the increased revenue in IT segment was off-set by lower revenue recognition in OGPC and lower progressive billing of oilfield drilling services to PETRONAS Carigali Sdn Bhd during the current year quarter. The Group's Energy division was affected by the lower level of upstream activities as a result of overall market softness of the Oil & Gas industry.

The Group recorded PBT of RM18.8 million in current quarter as compared to the immediate preceding quarter of RM13.3 million, an increase of RM5.5 million (41%) in current reporting quarter. The overall profit margin of the Group's IT segment continues to grow by 12.8% quarter-to-quarter. Included in Energy segment was a one-off other income of RM5 million, an industry grant awarded to the Group's oilfield drilling services unit.

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

Quarter ended 30 September 2017 compared with quarter ended 30 September 2016

The Group recorded revenue of RM49.5 million in the current quarter and RM36.8 million in the preceding year corresponding quarter. Included in the preceding year corresponding quarter is two (2) months post acquisition revenue of OGPC.

The increase in revenue in current quarter was mainly driven from IT segment, primarily the new recurring income from operation & maintenance the VEP & RC system, e-Work Permit and growth in trade facilitation business.

The Group recorded a PBT of RM18.8 million in current quarter as compared to the preceding year corresponding quarter of RM8.5 million.The increase in Group's PBT was contributed by growth in the Group's B2B & B2G business and new recurring income from operation and maintenance of the VEP & RC system.

Year-to-date ended 30 September 2017 compared with year-to-date ended 30 September 2016

The Group recorded RM142.4 million in revenue for the current year-to-date as compared to the preceding year of RM111.1 million. The overall 28% higher revenue in the current year-to-date was mainly contributed by Energy segment, namely full consolidation of OGPC's result and progressive billing of oilfield drilling services under the Umbrella contract to PETRONAS Carigali Sdn Bhd.

The IT segment recorded revenue of RM98.6 million for the current year-to-date is mainly attributable to the recurring income from operation & maintenance the VEP & RC system, trade facilitation, e-Work permit and B2B business.

The Group's PBT increased more than two fold to RM48.2 million in current year-to-date as compared to RM21 million, excluding the one-off share of pre-acquisition gain of excess fair value of RM85.3 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 2017

The Group's Information Technology business continues to firm up its e-services by broadening its product range in business-to-business segment to complement the Group's position in delivering business-to-government services. The new recurring income from operation and maintenance of the VEP&RC System, eWork Permits, and the 1Trade, a Web-based one-stop portal for total cargo and trade management and related services have further open up a new revenue stream to the Group.

The Group income performance is expected to perform well in tandem with the improving crude oil price outlook

Barring any unforeseen circumstances, the Group expects to deliver positive results for the year 2017.