CEO Morning Brief

Pestech Posts RM79.6 Mil Quarterly Loss on Concession Rights Impairment

Publish date: Fri, 01 Dec 2023, 08:50 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Nov 30): Pestech International Bhd reported a net loss of RM79.55 million for the three-month period ended Sept 30, 2023, due to the impairment of its concession rights in Cambodia amounting to RM15.5 million.

There is no year-on-year comparison as the industrial engineering group changed its financial year end to Sept 30 from June 30, in October.

Quarterly revenue stood at RM88.20 million, underpinned by low contribution from its rail segment due to the termination of the group’s KLIA aerotrain project contract.

In a bourse filing on Thursday, Pestech said it remains positive on the overall prospect of the industry that it operates in.

The group said the power infrastructure segment is expected to continue on the path of growth, with vast investment in renewable energy generation and rail electrification for clean sustainable transportation development which requires grid improvement and expansion.

“Whilst we pursue workable solutions to reconstitute our financial strength, our team remains active in the procurement of new projects, with focus primarily set on those with progressive payment structure in order to lessen the requirements for capital investment and expenditures,” the group added.

Shares in Pestech finished 1.5 sen or 5.26% lower at 27 sen, giving the group a market capitalisation of RM267.90 million. Year to date, the stock has fallen by 12.90%.

Source: TheEdge - 1 Dec 2023

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