AMPANG (Aug 29): Ahmad Zaki Resources Bhd (KL:AZRB) is seeking government support to cover half of the financing needed to help complete the second section of the East Klang Valley Expressway (EKVE).
The construction firm requires an additional RM300 million to complete the expressway crucial to the Kuala Lumpur Outer Ring Road system, with Bank Pembangunan Malaysia Bhd having agreed to provide half of the financing, said AZRB's executive vice-chairman Datuk Seri Wan Zakariah Wan Muda.
"We hope that the government would be able to provide the other half of the additional financing needed," he said.
Wan Zakariah was speaking during the opening ceremony of the expressway’s Section 1 at the Ampang elevated interchange in Bukit Belacan on Friday.
The project is a 39.66km dual two-lane tolled expressway between Bandar Sungai Long and Ukay Perdana, with a mainline distance of 24.16km and 12km of spur roads. The expressway was supposed to be completed in 2019.
However, rising construction costs, construction challenges due to the hilly geography as well as Covid-19 pandemic disruptions delayed the completion of the expressway.
Wan Zakariah said that AZRB will be able to service debts raised for the EKVE project, based on traffic projections of the highway.
In the 12-month period ended June 30, 2025 (FY2025), AZRB’s net profit plunged 96.5% year-on-year (y-o-y) to RM3.32 million, as its other operating income plummeted to RM11.6 million from RM452.15 million in the preceding 12-month period.
As at June 30, 2025, AZRB’s non-current borrowings stood at RM2.55 billion, while its current borrowings declined to RM308.4 million from RM350.19 million a year earlier. With shareholders’ equity coming in at RM198.85 million, AZRB’s net gearing stood at 12.7 times.
AZRB closed at 24.5 sen on Friday, up 2.1%, valuing the group at RM657.74 million. Year to date, the counter has largely traded sideways, as it started the year at 23 sen.