KUALA LUMPUR (Aug 18): WCE Holdings Bhd (KL:WCEHB), which builds and operates the West Coast Expressway (WCE), recorded an 84% jump in earnings before interest, taxes, depreciation and amortisation (Ebitda) to RM33.4 million for the first quarter ended June 30, 2025 (1QFY2025) compared to RM18.1 million a year earlier, thanks to higher toll collections.

In a statement on Monday, the highway operator said its toll revenue for the quarter under review jumped 61% to RM42.02 million compared to RM26.10 million previously, mainly due to higher traffic volume after the opening of three additional sections (Sections 1, 2 and 11 of WCE).

WCE posted a net loss of RM25.33 million in 1QFY2025, slightly narrowing from a net loss of RM25.86 million the period a year earlier, due to the accounting treatment of interest expense incurred in relation to project financing for completed sections of the WCE Project in accordance with MFRS 123.

“Upon the completion of sectional construction, the interest expense for these sections will be charged to the statement of profit or loss.

“The group is expected to incur losses in the early years of toll operations due to the cessation of capitalisation of interest expenses for completed sections,” WCE said in a filing with Bursa Malaysia on Monday.

Its revenue for the quarter increased more than five times to RM393.85 million, from RM75.57 million during the same period, driven by higher revenue from its construction business.

Its construction business saw a 710% surge in revenue to RM318.27 million from RM39.31 million a year earlier due to higher construction activity including rest and service areas, as well as the remaining sections of the highways.

On its prospects, WCE anticipates that a continued ramp-up in toll collections will further strengthen cash flows and operating results.

“In the long term, full completion of the WCE is expected to drive revenue growth beyond financing costs, enabling a transition to sustained profitability,” it added.

The project involves the development of a 233km tolled highway from Banting, Selangor, to Taiping, Perak.

Currently, eight out of 11 sections are already operational, covering 180km across Selangor and Perak. The entire Perak alignment (120km) is now fully completed.

On its construction segment, the group said it is currently executing projects with a combined contract value of RM800 million, including access works from WCE to a mixed development in Kota Seri Langat, Section 7B (10km) from Assam Jawa Interchange to Tanjung Karang Interchange; and construction of 10 rest and service areas along the WCE.

WCE’s share price closed unchanged at 74.5 sen, giving the group a market capitalisation of RM2.46 billion.