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Quarterly Report For The First Quarter Ended 31 March 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 RM43.8 million in current quarter as compared to the immediate preceding quarter of RM67.3 million. The revenue for current quarter was mainly driven from its trade facilitation business, post acquisition revenue of OGPC Sdn. Bhd. ("OGPC"), and recurring income from operate & manage the Vehicle Entry Permit and Road Charge ("VEP & RC") system.

Included in the immediate preceding quarter was revenue from an one off system integration project of RM6.7 million, and second 40% progress billing of VEP & RC Contract (RM17.0 million) from Ministry of Transport ("MOT"). The final progress billing for the remaining 20% for VEP & RC project of RM8.5 million is to be invoiced by end of 2017, after the expiry of the 12 month warranty period.

The Group recorded Profit Before Tax ("PBT") of RM16.1 million in current quarter as compared to the immediate preceding quarter of RM36.3 million. Included in the immediate preceding quarter was the share of result of associate company, Ping Petroleum Limited ("Ping") of RM31.3 million, of which RM23.5 million was the tax credit resulted from the downward revision of the rate of the Supplementary Charge pursuant to the United Kingdom's Financial Bill 2016 effective from 15 September 2016.

By excluding the effect of the tax revision from the share of result of associate, the Group recorded 125% increase in PBT in current quarter as compared to immediate preceding quarter.

Detailed analysis of the performance for the current quarter

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

The Group recorded revenue of RM43.8 million in the current quarter and RM26.9 million in the preceding year corresponding quarter. The increase in revenue was mainly driven from the consolidation of OGPC's result, recurring income from operate & manage the VEP & RC system and continued growth in the Group's B2B & B2G business.

The Group recorded a PBT of RM16.1 million in current quarter as compared to the preceding year corresponding quarter of RM6.3 million. The significant jump in the Group's PBT was resulted from the Group completed transformation, to become a stronger company with two core businesses.

OGPC reported PBT of RM4.6 million in current quarter, despite local oil major cut its capital and operational expenditure due to the low crude oil prices. Included in current quarter also share of result of associate from PING of RM4.5 million.

The Group's Information Technology & e-Commerce business, lead by growth in the Group's B2B & B2G business, new recurring income operate & manage the VEP & RC system and revenue from e-work permits have contributed to the improved PBT in current quarter.

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 Group income performance is expected to perform well in tandem with the improving crude oil price outlook. The new recurring income from the VEP & RC System project, eWork Permits, and the opportunity under the PETRONAS Carigali Umbrella Contract, to the directional drilling unit has opened up a new revenue stream to the Group.

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