KUALA LUMPUR (Nov 21): Taliworks Corp Bhd's net profit fell by 69.7% to RM12.51 million for the third quarter ended Sept 30, 2022 (3QFY22), from RM41.36 million a year ago.

Quarterly revenue fell by 10.7% to RM91.28 million from RM102.31 million recorded in the previous year, due to lower revenue from its toll segment, the company stated in a filing with Bursa Malaysia on Monday (Nov 21).

However, the lower revenue from the toll segment was mitigated by contributions from water treatment, supply and distribution segment, construction segment as well as renewables segment.

Selangor Phase 1 Water Treatment Plant operations, the sole source of revenue for the water treatment, supply and distribution segment, recorded higher metered sales as well as higher electricity and chemical rebates due to higher electricity costs during the current quarter.

The higher electricity cost was due to the imbalance cost pass-through surcharge imposed by Tenaga Nasional Bhd with effect from Feb 1, the company said in the filing.

Taliworks' earnings per share declined to 6.2 sen in 3QFY22 from 2.05 sen in 3QFY21.

For the cumulative nine months ended Sept 30, 2022, Taliworks reported a net profit of RM34.14 million compared with RM66.31 million a year ago and a revenue of RM251.86 million compared with RM229.85 million reported a year ago.

The group declared a third interim single-tier dividend of 1.65 sen per share, amounting to RM33.26 million, to be payable on Dec 23.

On prospects, the group said demand for treated raw water is expected to remain robust for the remainder of the year whilst the toll division is seeing significant improvements in traffic volume with the upturn in economic activities.

"The addition of the solar renewable business is [a testament to] the group's continuous efforts to expand and diversify its business portfolio to reduce reliance on the existing core businesses. The renewables business is expected to contribute to sustainable earnings and cash flow streams to the group," Taliworks said.

The group said it will continue to focus on mature operational cash-generating utilities and infrastructure businesses to provide a recurring and stable source of cash flow.