KUALA LUMPUR (Nov 29): Cahya Mata Sarawak Bhd (CMS)’s net profit fell 93.5% to RM9.98 million in the third quarter ended Sept 30, 2023 (3QFY2023) from RM154.36 million a year earlier, due to a lower share of profit from its associates as well as absence of one-off gains recognised during the previous year's corresponding quarter.

The group’s filing on Wednesday showed that profit contributions from its associates dropped 67% to RM13.95 million from RM42.23 million in 3QFY2022.

Furthermore, the one-off gains recognised in 3QFY2022 include a negative goodwill of RM62.47 million arising from the acquisition of Oiltools group and reversal of impairment of RM37.69 million on its subsidiary OM Materials' investment and loan.

Quarterly revenue, in contrast, rose 8.4% to RM301.90 million from RM278.39 million a year ago, mainly due to higher contributions from its cement and Oiltools divisions.

For the nine-month period ended Sept 30, 2023 (9MFY2023), CMS recorded a net profit of RM78.88 million, down 70.3% from RM265.95 million in the previous year's corresponding period, despite revenue growing 23.6% to RM868.09 million from RM702.17 million.

CMS noted that there was a 66% drop in profit contributions from its associates during the period as the group no longer recognises profits from an associate which was disposed of in December 2022.

It further said that the group's performance for the first nine months has been within expectations, with the exception of its phosphate division where operation was deferred. "We expect the remainder of the year to be similar to the performances of previous quarters," CMS said.

"The board of directors continue to hold a positive view of the Sarawak economy, which augurs well for the group as our businesses are well placed to benefit from the expected developments," it added.

Shares of CMS closed down one sen or 0.89% at RM1.11 on Wednesday, valuing the company at RM1.19 billion.