Minetech Turns To Profit In Q2 FY2024 Helped By Civil Engineering Division

Minetech Resources Berhad (Minetech) recorded an operating profit of RM790,000 in the second quarter ended 30 September 2023 (Q2 FY2024), from the loss before tax of RM1.49 million in Q2 FY2023.

The civil engineering specialist and bituminous products manufacturer also achieved a revenue of RM33.24 million, an increase from RM26.94 million in Q2 FY2023.

“The improved performance was driven by the Civil Engineering division, which saw revenue rise to RM25.45 million with an operating profit of RM2.53 million.

“This is primarily due to increased work at the Selinsing Gold Mine (SGM) and new incorporated construction of road and drainage system (HRD) projects,” it said in a statement today (Nov 27).

The group said although the Bituminous Products segment experienced a slight revenue dip to RM6.3 million, it maintained profitability with an operating profit of RM580,000.

“The Services segment faced challenges with a decrease in revenue to RM320,000 and an operating loss of RM950,000. In contrast, the newly operational Energy segment contributed positively with RM1.22 million in revenue, showcasing the potential of this new venture,” it added.

Its executive director Matt Chin said the results from Q2 FY2024 represent a pivotal moment in Minetech’s journey, showcasing its dedication to strategic growth and exceptional operational efficiency.

“The introduction of our energy segment marks an exciting new chapter. Our portfolio’s diversification, coupled with our robust core in civil engineering and bituminous products, positions us optimally for a future rich with possibilities.

“We are not only optimistic but also energized about the potential that lies ahead, as we continue to explore innovative and sustainable growth opportunities,” Chin added.

Comparatively, Q2 FY2024 marks a significant improvement from the immediate preceding quarter, from loss before tax of RM1.12 million to a profit before tax of RM790,000, attributed to the enhanced performance in the construction segment and the commencement of the energy segment.

The group’s adjusted Ebidta also saw a positive trend, standing at RM3.36 million.

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