Ng (third right) speaking at the press conference.
KOTA KINABALU (June 20): SuriaGroup achieved a total revenue of RM278.4 million for the financial year ended 31 December 2023, said its Group Managing Director Datuk Ng Kiat Min.
The Group has delivered a stable performance despite mixed results, supported by the strength of its underlying businesses.
“For the financial year ended 31 December 2023, SuriaGroup achieved a total revenue of RM278.4 million, a 6.6 per cent decrease from RM298 million recorded in the previous year. The decline in revenue is primarily due to a one-off, non-cash transaction finalised in 2022, involving carpark units provided as entitlement in kind for the Jesselton Quay (JQ) project.
“The Group’s financial performance was further impacted by additional provisions for replacement costs resulting from a rigorous review of asset replacement policies, and adjustments in the amortisation of the Port’s concession assets.
“Consequently, the Group’s gross profit for 2023 stood at RM77.8 million, compared to RM110.4 million recorded in 2022,” she said in a press conference after the Group’s 41st Annual General Meeting (AGM) on Thursday.
The Group declared an interim dividend of 2.0 sen per ordinary share for 2023.
During the AGM, a final dividend pay-out of 1.5 sen per ordinary share was further approved, resulting in a total dividend distribution of 3.5 sen per ordinary share, equating to 35.3 per cent of the net profit for the year.
In total, RM12.1 million in dividends will be disbursed to shareholders for the year 2023.
The port operations segment continues to be the primary revenue generator for the Group in 2023, accounting for 97 per cent of the total revenue with RM241.2 million (excluding construction revenue).
During the fiscal year, the port operations division witnessed a marginal downturn in cargo throughput (excluding containers), both at wharf and anchor, totalling 6.5 per cent, resulting in a cargo throughput of 21.7 million metric tonnes (MT) compared to 23.2 million MT in the previous year.
Similarly, container throughput registered a slight decline at 428,313 TEUs compared to 449,485 TEUs in 2022.
Sabah Ports, overall, managed a total cargo throughput of 27.5 million MT (including containers) during the financial year, compared to 29.2 million MT in 2022, with bulk oil constituting a significant portion of the handled cargo.
Primary types of cargo handled at the wharf consist of containerised cargo and liquid cargo such as palm oil and petroleum, each comprising 38 per cent of total load, dry bulk items like fertiliser and palm kernel expeller at six per cent, and other general cargo at 18 per cent.
For 2024, Ng said SuriaGroup had exhibited promising indicators as it entered 2024.
“Notably, there was a significant 40.6 per cent increase in profit before tax (PBT) for the first quarter of the financial year 2024, reaching RM19.7 million and subsequently increasing net profit up to RM14.9 million. This achievement was predominantly attributed to improved contributions from the port operations segment.
“SuriaGroup further anticipates to make significant headway on strategic ventures such as the partnership between Sabah Ports and DP World, anticipated to propel business growth in 2024. The collaboration with DP World to manage and operate SBCP underscores the strategic focus on strengthening the port’s regional trade prominence,” she said.
The Group views the partnership optimistically, as Sabah Ports leverages on DP World’s global expertise in managing ports and building supply chain networks to help optimise SBCP’s operations and potentially catalyse increased trade through Sabah.
In the property development sector, Suria is positive on the future outlook through the joint ventures initiatives with the partners namely SBC Corporation Behad and BEDI Development to develop prime land at the Kota Kinabalu Port.
The Group is confident that the successful execution of its business strategies, the culmination of ongoing development projects, and strategic collaborations in the pipeline will pave the way for growth across its diversified business segments and foster long-term value creation.
