FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
14
RESULTS OF OPERATIONS
in RM’000
REVENUE
EBITDA
2013
190,611
é
63%
2013
26,106
é
83%
2014
309,845
2014
47,790
NET PROFIT
EBITDA MARGIN
as a % of revenue
2013
(2,321)
é
909%
2013
13.7
é
12%
2014
18,775
2014
15.4
REVENUE
Reported revenue for the Group for the financial year ended 31 December 2014 amounted to RM309.8 million,
as against RM190.6 million in the previous year. The Group revenue for 2014 of RM309.8 million increased in
comparison with the previous year.
REVENUE
(by customer location)
2014
RM’000
%
2013
RM’000
%
% change
in revenue
Taiwan
90,405
29
63,992
34
41
Singapore
42,740
14
59,481
31
-28
Malaysia
157,893
51
43,600
23
262
Philippines
10,276
3
13,601
7
-24
Others
8,531
3
9,937
5
-14
Total
309,845 100
190,611 100
63
An analysis of revenue by customer location shows growth in Malaysia and Taiwan while the growth in Singapore,
Philippines and others had declined by 28%, 24% and 14% respectively. The revenue in Singapore decreased
from RM59.5 million to RM42.7 million. However, in Malaysia, the revenue increased by RM43.6 million to RM157.9
million. On an overall basis, the Group experienced a growth in revenue rate of 63% or an increase of RM119.2
million for year 2014.
The growth in Taiwan was due to the positive growth of the semi-conductor business while Philippines experienced
stiff competition in its services. The drop in Singapore was due to the deferment of outages by its power generation
customers. The increase in the activities in Malaysia was due to the progressive revenue from the project in Tanjung
Bin. Malaysia is our leading country in terms of revenue.
EARNINGS
Earnings before interest, tax, depreciation and amortization (“EBITDA”) of the Group for 2014 increased to RM47.8
million from RM26.1 million the year before. As a percentage of revenue, EBIDTA increased by 83% and was due
to higher revenue which increased by RM119.2 million or 63% compared to the year before.
The lower finance costs, lesser depreciation of property, plant and equipment, the net realized gain on foreign
exchange and sale of an associate company had a positive impact on net profit for 2014. The depreciation and
amortization of RM18.4 million in 2014 was lower than last year of RM18.7 million. Profit after tax increased from
RM0.5 million to RM23.2 million resulting from factors discussed above and provision of deferred taxation in last year.
As a result of the factors discussed above, the consolidated net profit attributable to shareholders of the Company
for the financial year ended 31 December 2014 was RM18.8 million, while last year was a consolidated net loss of
RM2.3 million. This translated to basic earnings per share in 2014 of 1.86 sen compared to basic loss per share
of 0.23 sen in 2013.
FINANCIAL
REVIEW
