The company's quarterly revenue declined by 34.4% to RM151.16mil from RM230.51mil in 2Q24.
PETALING JAYA: WCE Holdings Bhd
narrowed its net loss for the second quarter ended Sept 30, 2024 (2Q25) to RM10.58mil from RM24.17mil a year ago, supported by the completion of sections of the West Coast Expressway (WCE).
However, quarterly revenue declined by 34.4% to RM151.16mil from RM230.51mil in 2Q24.
In a statement, WCE, which holds an 80% stake in West Coast Expressway Sdn Bhd – responsible for the construction, management, and operation of the WCE – attributed a 128% year-on-year growth in toll collection revenue to RM29.8mil from RM13mil in 2Q24 to the opening of new sections.
“The recent openings of Section 1, Section 6 (Bandar Bukit Raja Utara – Assam Jawa) and Section 11 (Beruas – Taiping Selatan) have significantly amplified WCE’s daily traffic volume, whereby the sectional average daily traffic for the current financial period increased by a significant 83% compared to financial year ended March 31, 2024 (FY24),” it noted.
On the other hand, revenue from the construction segment fell by 48% to compared to 2Q24, in line with the completion of more WCE sections.
Despite reporting a pre-tax loss, WCE’s operating performance marked improvement, with earnings before interest, taxes, depreciation, and amortisation (Ebitda) increasing 259% to RM38.2mil for 2Q25, compared to RM10.6mil in 2Q24.
“This growth in Ebitda indicates that the group remains profitable at an operating level,” it said.
For the first half ended Sept 30, 2024 (1H25), WCE’s net loss improved to RM36.44mil from RM50.58mil a year ago, while revenue declined to RM226.73mil from RM346.55mil in 1H24.
WCE said the 233-km expressway project, stretching from Banting, Selangor to Taiping, Perak, is nearing full completion.
The group anticipates initial losses in the early years of toll operations due to the cessation of interest expense capitalisation on completed sections.
However, with the staggered opening of remaining sections, WCE expects improved cash flows and operating results.
“Once the toll operations are fully operational, the group expects a shift toward profitability as revenue growth outpaces interest costs,” it noted.
The WCE project is divided into 11 sections whereby seven sections have been opened for traffic.
WCE said that of the four remaining sections, one has completed construction and is now at the inspection stage, with its opening expected soon.
Meanwhile, construction work on the final three sections is ongoing.
