The increase in cargo volume transported pushed up Harbour-Links shipping, marine services and others division revenue and pre-tax profit to RM74.5mil and RM3.04mil respectively in the first quarter to Sept 30, 2014 (1Q-2014) from RM61.1mil and RM2.7mil respectively in 1Q-2013. In the quarter under review, Harbour-Link posted strong earnings growth, raising its group pre-tax profit to RM17.1mil from RM12.6mil, an increase of RM4.5mil or over 35% from 1Q-2013 although revenue only increased marginally to RM136.6mil from RM135.4mil, according to the Bintulu-based companys latest quarterly results. The shipping, marine service and others divisions was the key contributor to group revenue, followed by logistics services and equipment rental divison (RM49.4mil), engineering works division (RM11.8mil) and property development division (RM879,000). But the logistics servicves and equipment rental division contributed about 75% or RM12.9mil (vs RM6.5mil in 1Q-2013) to groups pre-tax profit with the completion of certain project logistics contracts. Going forward, Harbour-Link said with expected continual growth of the shipping industry, the group, with its current fleet of vessels and expertise, would continue to explore business opportunities.
The logistics services and equipment rental division is expected to remain positive. The group will continue to focus on providing value-added total logistics solutions to sustain its growth. The engineering division is expected to continue contributing postively to the group, it added. Meanwhile, Sarawak Cable Bhd has more than doubled its group revenue to RM82.4mil in the third quarter to Sept 30, 2014 from RM40.1mil a year ago. The company posted higher pre-tax profit of RM1.33mil, up from RM167,000 previously. Over a nine-month period, Sarawak Cables group revenue expanded to RM246.2mil from RM146.3mil during the first nine months of 2013 while groups pre-tax profit jumped to RM5.2mil from RM1.39mil. All the key business segments contributed positively to the improved performance. Revenue from the sales of power cables and conductors surged to RM81.1mil (RM58mil in first nine months of 2013) while revenue from the sales of galvanised steel products and transmission tower rose to RM20.2mil (RM17.3mil). The contract revenue segment turned in with impressive performance, with its turnover nearly doubled to RM147.7mil (RM77.3mil).
Updating the comnpanys proposed acquisition of 100% equity interest in Universal Cable (M) Bhd (UCMB) and Leader Cable Industry Bhd (LCIB) from Hng Capital Sdn Bhd for RM210mil, Sarawak Cable said Bursa Malaysia had on Nov 21 approved the listing of 37.6 million new ordinary shares of 50sen each to be issued as part payment for the proposed acquisition. The balance of the acquisition will be paid by cash. The proposed deal is expected to be completed next month, and UCMB and LCIB will then become wholly-owned subsidiaries of Sarawak Cable.