Suria posts 40pc gain; upbeat on DP World
Published on: Friday, June 21, 2024
By: Ricardo Unto
Ng, Faisyal and others at the press conference.
Kota Kinabalu: SuriaGroup has exhibited promising indicators as it entered 2024, said Group Managing Director Datuk Ng Kiat Min.
“Notably, there was a significant 40.6 per cent increase in profit before tax (PBT) for the first quarter of the financial year 2024, reaching RM19.7 million and subsequently increasing net profit up to RM14.9 million,” she told a press conference, here, Thursday.
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“This achievement was predominantly attributed to improved contributions from the port operations segment.”
She said SuriaGroup anticipates making significant headway on strategic ventures, such as the partnership between Sabah Ports and DP World, which is expected to propel business growth this year.
“The collaboration with DP World to manage and operate SBCP underscores the strategic focus on strengthening the port's regional trade prominence.
“The Group views the partnership optimistically, as Sabah Ports leverages DP World’s global expertise in managing ports and building supply chain networks to help optimise SBCP’s operations and potentially catalyse increased trade through Sabah,” she said.
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She said that Suria is positive about the future outlook in the property development sector, as evidenced by the joint venture initiatives with partners SBC Corporation Berhad (SBC) and Bedi Development.
“The Group is confident that the successful execution of its business strategies, the culmination of ongoing development projects, and strategic collaborations in the pipeline will pave the way for growth across its diversified business segments and foster long-term value creation.”
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Meanwhile, Ng said the Group has delivered a stable performance for the 2023 financial year despite mixed results, supported by the strength of its underlying businesses.
“For the financial year ended 31 December 2023, SuriaGroup achieved a total revenue of RM278.4 million, a 6.6 per cent decrease from RM298.0 million recorded in the previous year. The decline in revenue is primarily due to a one-off, non-cash transaction finalised in 2022, involving carpark units provided as entitlement in kind for the Jesselton Quay (JQ) project,” she said.
She added that the Group’s financial performance was further impacted by additional provisions for replacement costs resulting from a rigorous review of asset replacement policies and adjustments in the amortisation of the Port's concession assets.
“Consequently, the Group’s gross profit for 2023 stood at RM77.8 million, compared to RM110.4 million recorded in 2022.
“The Group declared an interim dividend of 2.0 sen per ordinary share for 2023.”
During the 41st annual general meeting (AGM), she said a final dividend pay-out of 1.5 sen per ordinary share was further approved, resulting in a total dividend distribution of 3.5 sen per ordinary share, equating to 35.3 per cent of the net profit for the year.
“In total, RM12.1 million in dividends will be disbursed to shareholders for 2023,” she said. She said the port operations segment continued to be the primary revenue generator for the Group in 2023, accounting for 97 per cent of the total revenue with RM241.2 million (excluding construction revenue).
“During the fiscal year, the port operations division witnessed a marginal downturn in cargo throughput (excluding containers), both at wharf and anchor, totalling 6.5 per cent, resulting in cargo throughput of 21.7 million metric tonnes (MT) compared to 23.2 million MT in the previous year. Similarly, container throughput declined slightly at 428,313 TEUs compared to 449,485 TEUs in 2022.”
Overall, Sabah Ports managed a total cargo throughput of 27.5 million MT (including containers) during the financial year, compared to 29.2 million MT in 2022.
Bulk oil constituted a significant portion of the handled cargo.
“Primary types of cargo handled at the wharf consist of containerised cargo and liquid cargo such as palm oil and petroleum, each comprising 38 per cent of total load, dry bulk items like fertiliser and palm kernel expeller at six per cent, and other general cargo at 18 per cent,” she said.
She also said the Sapangar Bay Container Port (SBCP) is currently in the initial phases of its expansion project, poised to transform into a regional trade hub with enhanced international connectivity.
“Notable completed aspects under the expansion include the parking facilities for trailers and a commercial centre expected to be completed by year’s end.
“The key features of this expansion include extending the berth to 833m, deepening the draft to 14m, and expanding the container yard area from 15 to 40 acres.”
She said the port's handling capacity will increase from 500,000 TEUs to 1.0 million TEUs upon completion.
"Having entered into a partnership with DP World to manage Sapangar Bay Container Port (SBCP), the collaboration will cement SBCP’s position as the premier regional trade hub for the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (Bimp-Eaga)," she said. Also present was SuriaGroup Chairman Datuk Faisyal Yusof Hamdain Diego.
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