vested
IGB third-quarter pre-tax profit surges 149%
Cititel Express is one of the three hotels disposed by the IGB group this year.
KUALA LUMPUR: IGB Corporation Bhd's pre-tax profit surged 149% to RM252.64 million in the third quarter ended Sept 30, 2016, from RM101.36 million a year earlier.
In a filing with Bursa Malaysia on Wednesday, the group said the higher profit was mainly attributed to contributions from the property development, property investment-retail and hotel divisions.
In addition, it said the pre-tax profit for the quarter included a one-off gain of RM136.20 million from the disposal of property, plant and equipment by a subsidiary.
Revenue increased 18% to RM324.71 million compared with RM274.49 million in the corresponding period of 2015.
During the year the group disposed of three hotels.
Cititel Express Kuala Lumpur was disposed of in May 2016 for a cash consideration of RM37.0 million and in July 2016, the group's 65%-owned MiCasa Hotel, Yangon was disposed of for a cash consideration of US$46 million.
In August 2016, the group's wholly-owned subsidiary, Great Union Properties Sdn Bhd, entered into a conditional agreement for the disposal of Renaissance Kuala Lumpur Hotel for a cash consideration of RM765 million.
The agreement became unconditional on Oct 31, 2016, and the disposal is expected to be completed in the first half of 2017.
With the inclusion of the pre-tax gain of RM136.2 million arising from the disposal of MiCasa Yangon, the board is optimistic that there will be an improvement in the results of the group for financial year 2016 compared with FY2015, IGB said.
The company's shares resumed trading at RM2.48, up one sen, at 10am after halting for one hour. As at 10.30am they were up two sen to RM2.49 with 218,000 shares traded.
Source: Bernama