Advancecon Holdings Bhd achieved a pre-tax loss of RM3.987 million on the back of a turnover of RM104.992 million for the first quarter ended March 31, 2022, from a pre-tax profit of RM1.618 million on the back of a turnover of RM65.077 million previously
In a Bursa Filing, it said that for r the current quarter under review, the Group recorded a 61.3% increase in revenue as compared to the preceding year’s corresponding quarter. The increase was mainly attributable to the consolidation of SERB’s revenue which contributed RM37.9 million to the Group’s revenue and higher progress billings of RM 3.9 million from its on-going construction projects and support services. However, the above was partly mitigated by lower revenue of RM1.3 million from Green Energy Segment.
In a statement, the company said that the group’s construction and support services segment, representing 63.7% of the total RM105.0 million 1Q22 revenue, was supported by billings recognized from its RM624.1 million order book at 31 March 2022.
It said that about 74% of its order book are earthworks and civil engineering services for infrastructure projects such as ECRL, WCE, PBH Sarawak, and Wenan Steel with the balance from residential, industrial, and oil and gas projects. The order book also includes the new wins secured in 1Q22, which are the RM42.5 million Bandar Bukit Raja Development (Phase 2) project, and the Group’s first RM18.7 million earthworks project from the oil and gas sector for the Bintulu Additional Gas Sales Facilities 2 of Petronas Carigali Sdn. Bhd. in Sarawak awarded by Petrofac.
Group Chief Executive Officer of Advancecon Holdings Bhd said: “While our machinery-intensive earthworks shield us from the construction sector’s labor crunch, we are impacted by the higher diesel prices, especially for projects secured prior to 2022. Still, there are no work stoppages in 1Q22 that allowed sufficient planning in work schedules, which led us a steady progress in ongoing projects. We hope to maintain this level of operational efficiency for the rest of the year while keeping an eye for new projects.”
