KUALA LUMPUR, June 19 ― UEM Sunrise Bhd posted a net loss of RM21.94 million for the first quarter ended March 31, 2020 (Q120) from a net profit of RM30.10 million in the same period last year.

Revenue dropped to RM195.85 million from RM419.26 a year ago.

In a filing with Bursa Malaysia today, the group said the recorded loss for the quarter was mainly due to the impact of foreign exchange losses amounting to RM18 million arising from the weak Australian dollar and South African Rand.

It said the majority of the company’s projects launched in the second half of 2019 led to lower revenue as the ongoing construction works are at the early stages of progress during the period under review.

Revenue was also affected by lower sales for the period, mainly attributable to the absence of new project launches in the quarter, it said.

Managing director/chief executive officer Anwar Syahrin Abdul Ajib said approximately 90 per cent of the projects launched last year, in terms of gross development value (GDV), was offered to the market in the second half of 2019.

Moving forward, he said the group would focus on further strengthening its balance sheet to enable the company to ride out the turbulence.

“Our balance sheet must be strong so that we can work towards normalising profitability. Our cash and bank balance of RM864 million gives us assurance when cash is required whilst our low net and gross gearing of 0.35 times and 0.47 times, respectively provide headroom to raise funds and borrow more, should such opportunities avail,” he said.

He noted that the company's untapped credit facilities stood at RM1.9 billion as of the end of the quarter including sukuk of RM1.4 billion.

“We continue to explore the acquisition of strategic landbanks both local and overseas for the sustainability of the business and remain steadfast in selling non-strategic lands to raise additional cash.

“We also target to reduce operating expenses through a cost optimisation exercise. On top of that, the incentives under the National Economic Recovery Plan (Penjana) coupled with the current low-interest-rate regime, should augur well for the property market ahead,” he said.

The company foresees that its earlier sales and GDV targets of RM2.0 billion each for 2020 are likely to be impacted by the economic uncertainty and is evaluating the targets pending the finalisation of its numbers.

“Meanwhile, we will continue to exercise prudence in managing the challenging environment,” Anwar Syahrin added. ― Bernama