Minetech posts RM348,000 net profit for Q2

KUCHING: Minetech Resources Bhd’s newly operated energy segment has contributed positively with RM1.22 million in revenue to group turnover of RM33.2 million in second quarter ended Sept 30, 2023 (2Q2023).

The energy segment, particularly the solar power plant project, achieved commercial operation in May 2023.

In 2Q2023, Minetech returned to the black with group net profit of RM348,000 from loss of RM778,000 in 2Q2022 as revenue expanded to RM33.2 million from RM26.9 million. Earnings per share stood at 0.02 sen from losses per share of 0.07 sen.

“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, primarily due to increased work at the Selinsing gold mine and new incorporated construction of road and drainage projects.

“Although the bituminous products segment experienced a slight revenue dip to RM6.3 million, it maintained profitability with an operating profit of RM0.58 million.

“The services segment faced challenges with a decrease in revenue to RM0.32 million and an operating loss of RM0.95 million. In contrast, the newly operational energy segment contributed positively with RM1.22 million in revenue, showcasing the potential of this new venture,” Minetech said in a press release.

Comparatively, Minetech said its 2Q2023 financial results were a significant improvement from 1Q2023 when the group suffered pre-tax loss of RM1.12 million (2Q2023: +RM0.79 million), attributed to the enhanced performance of the construction segment and the commencement of the energy segment.

Minetech executive director Matt Chin said the introduction of the energy segment marked an exciting new chapter for the group as the new business is already beginning to deliver substantial benefits.

“The results from 2Q2023 represent a pivotal moment in Minetech’s journey, showcasing our dedication to strategic growth and exceptional operational efficiency.

“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 energised about the potential that lies ahead as we continue to explore innovative and sustainable growth,” he added.

Meanwhile, Reneuco Bhd (formerly KPower Bhd) suffered massive group losses of RM125 million in the three months to Sept 30, 2023 on revenue of RM4.57 million due mainly to impairments of contract assets and trade receivables. There is no comparison figure due to the company’s change of financial year to Sept 30, 2023 from June 30, 2023.

The construction-related activities segment, which did not generate any revenue in the current quarter, incurred pre-tax loss of RM107 million because of the impairment of contract assets and trade receivables.

The logistics segment was the key contributor to group revenue, with RM3.59 million or 79 per cent of group turnover. The segment reported pre-tax profit of RM1.17 million.

The property development and investment segment posted sales of RM0.86 million and pre-tax loss of RM11.38 million due to cost over-run for the Sentul project in addition to impairment of contract assets and trade receivables. 

The healthcare segment also did not do well, suffering pre-tax loss of RM5.74 million on sales of RM0.08 million.Minetech posts RM348,000 net profit for Q2