Taliworks Corp Bhd posted a net profit of RM16.99 million in the second quarter ended June 30, 2024 from RM11.8 million a year earlier on improved performance from the water treatment and supply segment and lower provision for heavy repairs in the toll highway segment.

KUALA LUMPUR (Aug 26): Taliworks Corp Bhd said its second quarter net profit climbed 43.92% to RM16.99 million from RM11.8 million a year earlier, amid improved performance from the water treatment and supply segment as well as lower provision for heavy repairs in the toll highway segment.

Revenue for the quarter ended June 30, 2024 (2QFY2024) rose 11.17% to RM98.97 million from RM89.03 million previously, contributed by all operating subsidiaries except the water treatment and supply segment, the group said in a filing on Monday.

Taliworks is involved in water treatment and supply, highway toll operations, engineering and construction, waste management and renewable energy.

The group declared a second interim dividend of one sen per share amounting to RM20.2 million, to be paid on Sept 27. Based on its closing price of 78.5 sen on Monday, the trailing 12 months’ dividend payout gives a yield of about 5.92%. The group is valued at RM1.57 billion.

For the cumulative six months ended June 30, Taliworks’ net profit grew 46.43% to RM32.01 million from RM21.86 million as revenue rose 5.33% to RM192.3 million from RM182.56 million.

Although there was a consistent and sustained demand for treated raw water in the Klang Valley during the financial period, there has been a gradual decrease in the metered sales from the water treatment plants located along the Sungai Selangor basin including from Sungai Selangor Water Treatment Plant Phase 1 (SSP1), said Taliworks.

This could be attributed to Air Selangor rationalising production in the southern region, allowing for the redistribution of excess water from the Langat 2 Water Treatment Plant to the northern region.

“Nonetheless, the group is closely monitoring its production to ensure that designated quality and quantity are adhered to comply with the BWSA [bulk water supply agreement] with Air Selangor,” it said.

In the toll highway business, the Grand Saga Highway registered tremendous growth in traffic volume following the opening of the SUKE Expressway as well as from greater economic activities, said the group.

Taliworks said it is also expecting the receipt of government compensation on deferred increase of toll rate in the current financial year of FY2024.