KUALA LUMPUR (Nov 28): WCE Holdings Bhd’s (KL:WCEHB), the concessionaire of the West Coast Expressway (WCE) project, extended its loss-making streak to six straight quarters with a net loss in the July-September quarter, mainly due to interest expenses related to project financing for the completed sections of the highway.

It incurred a net loss of RM10.58 million for its second quarter ended Sept 30, 2024 (2QFY2025), smaller than the RM24.17 million it recorded in 2QFY2024, according to the company’s bourse filing on Thursday.

Quarterly revenue dropped 34.42% to RM151.16 million from RM230.51 million despite higher toll collection, dragged by lower construction activity. 

Interest costs related to project financing jumped to RM52.3 million from RM38.3 million in 2QFY2024. No dividend was declared.

For the six months ended Sept 30, 2024 (6MFY2025), WCE Holdings' net loss narrowed to RM36.44 million from RM50.58 million in 6MFY2024, though revenue dropped 34.57% to RM226.73 million from RM346.55 million.

WCE Holdings said additional sectional toll revenue is expected to further improve its future earnings, and that it expects to shift to profitability once the highway is fully operational, with revenue growth outpacing interest costs.

The WCE project is divided into 11 sections. Seven sections have been opened for traffic.

The three sections still under construction are: Section 3 (Shah Alam Expressway - Federal Highway Route 2), Section 4 (Federal Highway Route 2 - New North South Klang Straits Bypass) and Section 7 (Assam Jawa - Tanjung Karang).

Construction of Section 2 (South Klang Valley Expressway - Shah Alam Expressway) was recently completed and the segment is being inspected prior to an “imminent” opening date.

Shares in WCE Holdings ended one sen or 1.27% lower at 78 sen, giving the group a market capitalisation of RM2.61 billion.