Tasek 2Q revenue lifted by domestic cement sales

Tasek Corp Bhd reported a 20.78 per cent rise in revenue for the second quarter, driven by higher demand for cement in its domestic market of Malaysia.

Revenue for the three months to the end of June 2014 reached MYR171.5m, compared with MYR142m a year earlier. The company said that the higher revenue was mainly due to higher domestic demand, while its concrete unit recorded an operating loss due to lower sales volumes which were partly offset by higher average selling prices.

"Sales volume was adversely affected by the closure of the Subang site plant [at the] end of August last year, while the segment's profitability was also affected by rising costs of production relating to higher costs of aggregate and sand materials during 2Q14, compared with the corresponding quarter of the previous year."

For the six months ended 30 June 2014, its net profit climbed 28.7 per cent YoY to MYR56.02m. Revenue grew 20.25 per cent to MYR334.4m, from MYR278.09m a year earlier.

The company expects its performance to continue to be positive in the third quarter, stating: "The ongoing government projects under the Economic Transformation Programme such as the MRT (mass rapid transit) and LRT (light rail transit) line extension projects, are expected to continue to lead the construction sector's growth in the remaining months of 2014," it added.