Suria Capital Holdings Berhad (SuriaGroup) saw a 18.5% decrease in profit before tax (PBT) of RM18.9 million for the third quarter of the financial period ended 30 September 2023 than RM23.2 million recorded in Q3FY22.
In a statement, the group engaged in port operations and property development said this is primarily due to higher operating expenses as a result of increased provision for replacement of major port infrastructure and facilities.
“In the current quarter, SuriaGroup recorded a 9.4% year-on-year (YoY) increase in total revenue, amounting to RM80.3 million in Q3FY23 compared to RM73.4 million in the corresponding quarter last year (Q3FY22).
“Revenue from operations however, slightly decreased reflecting a marginal YoY decline of RM1.5 million or 2.3% to the RM63.5 million recorded in the same quarter in prior year,” it said today.
For the 9MFY23 period, SuriaGroup recorded a 4% YoY increase in total revenue to RM182.5 million compared to RM175.4 million in the same period last year.
“This growth is primarily driven by higher port activities within the Port Operations Division, SuriaGroup’s core business, which contributed 89% of total revenue during the period under review.
“9MFY23’s PBT declined narrowly to RM49.6 million from RM49.8 million in 9MFY22, primarily due to higher provision for replacement of major port infrastructure and facilities for the current year-to-date,” it said.
Its group managing director Datuk Ng Kiat Min said the group is confident in its ability to weather these fluctuations and leverage on the resiliency of the port operations segment, which has consistently contributed positively to the group’s business.
“We are further positive that business will continue to be supported by normal economic activities, as well as strong domestic and regional demand,” she said.
The port operations segment remains the group’s major revenue provider, contributing 94% of its revenue and 73% of the its profit before tax for the current quarter under review.
“Apart from port operations, we are also optimistic about the property development project. The first phase of the project has been completed in the year 2022, while the second phase is planned to commence in year 2024,” Ng added.
In Q3FY23, the port operations division recorded a 4.3% YoY increase in revenue, growing to RM177.8 million in 9MFY23 from RM170.5 million in 9MFY22.
“The top line growth was primarily driven by tariff revision on crane hire charges effective August 2022 which resulted in higher operating
revenue for the port operations division. Correspondingly, 9MFY23 PBT of the segment rose 10.7% YoY to RM47.5 million from RM42.9 million in 9MFY22.
Meanwhile, its property development division’s topline improved to RM400,000 quarter-on-quarter as the Gallery Shoppes at Jesselton Quay Central achieved 76% occupancy rate.
The property development’s revenue was derived from the leasing of gallery shoppes at Jesselton Quay. These gallery shoppes are part of the entitlement accorded to the group from the first phase of the joint venture with SBC Corporation Berhad (SBC), which has been completed and delivered last year.
“Upon completion of the second phase, this development is poised to make a positive contribution to the group’s bottom line.”
