Damansara Realty bags RM27m Rapid project

September 25, 2017 | By | Reply More

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KUALA LUMPUR: Damansara Realty Bhd has won another integrated facilities management (IFM) project worth RM27.62 million, a joint venture with Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB), for a small medical facility in Petroliam Nasional Bhd’s (Petronas) Pengerang refinery in Johor.

In a statement today, it said the project covered medical services for utilities, interconnecting and offsite facilities for the Petronas Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang.

It said the small medical facility project also included an optional services contract for RM7.8 million, bringing the potential total contract value to RM35.42 million.

The win will boost Damansara Realty’s IFM segment further, adding to the RM285 million in contracts already secured as of July this year.

“Our IFM division has been the engine in driving our return to profitability, contributing 46 per cent from our total earnings before interest, tax, depreciation and amortisation (Ebitda) in the first half of the year alone,” said group chief executive officer Brian Iskandar Zulkarim.

“We implemented an aggressive strategic restructuring plan in late 2016, which has seen improved operational efficiencies within the group. Barring any unforeseen circumstances, we expect the group to show a full-year operating profit for the first time in four years,” he said.

Damansara Realty’s strategic transformation initiatives resulted a net profit of RM2.5 million in the first half, compared with a net loss of RM9.8 million in the corresponding period last year. Gross profit surged 78 per cent to RM27.6 million, compared with RM15.5 million a year ago.

“The turnaround in our financial performance shows that our strategic restructuring plan is working. From now until the end of next year, our focus in the next stage of the plan is to unlock shareholder value,” said Brian.

Damansara Realty’s IFM segment has benefitted greatly from the turnaround initiatives, becoming a preferred provider in integrated facilities management services to national oil company, Petronas.

The company was awarded with RM124 million contract to operate and maintain the temporary executive village and management office of Petronas’ Rapid project in September last year, and secured another contract for security management services worth RM26.21 million in July this year.

It said this small medical facility project would see the consortium to provide the management of medical services, including liaison, accounts and finance, monitoring and administrative services.

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