Part of the view of the Kuantan Port where the stock piles of the bauxite mineral is transported to the barges and its volume has been reduced from time to time since January 15. PIX: NIK NAIZI HUSIN/THE STAR
KUALA LUMPUR: WZ Satu Bhd, whose substantial shareholders include the Regent of Pahang, has warned investors of an expected share of loss of RM1.2mil in its mining segment results for the fourth quarter (Q4) ended Aug 31.
This was “due to a complete ban on bauxite export by the Federal Government in Kuantan, Pahang,” the construction and bauxite mining firm told Bursa Malaysia on Thursday.
Tengku Abdullah Sultan Ahmad Shah of Pahang holds a 9.69% stake (direct and indirect) in WZ Satu, just shy of the 9.71% equity interest owned by Lembaga Tabung Haji.
“The estimated loss of RM1.2mil is based on preliminary assessment of the unaudited consolidated management accounts of the group for the financial year ended Aug 31, 2017 (FY17), which have yet to be audited or reviewed by the independent auditors of the company,” WZ Satu said.
“Details of the group’s financial performance for Q4 FY17 and FY17 will be disclosed when the company announces its unaudited consolidated financial results in the month of October 2017.”
WZ Satu advised shareholders and investors to exercise caution when dealing in the shares of the company.
For the first nine months of FY17, the group recorded a 46% growth in earnings to RM21.86mil compared to the previous year’s corresponding period.
The lion’s share of the nine-month revenue of RM410.07mil came from civil engineering and construction (RM209.37mil), which also contributed the highest operating profit of RM12.27mil.
“The environmental issues of bauxite mining in Kuantan, Pahang, has resulted in a moratorium imposed by the Government of Malaysia on bauxite mining in Kuantan effective since Jan 15, 2016. This would continue to impact the group’s share of current associate results,” WZ Satu said in its last interim quarterly report.
WZ Satu shares, which climbed earlier this year and peaked at RM1.37 (in March), closed unchanged on Thursday at RM1.07.
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