MALAYSIA'S TANJONG POSTS 43.2 PCT RISE IN H1 PRE-TAX PROFIT

Tanjong plc (KLSE:2267) has chalked up a 43.2 per cent surge in interim pre-tax profit to RM461.487 million (US$134.4 million) from RM322.264 million a year ago thanks to solid results from its power generation and gaming businesses. Revenue for the six months ended 31 July 2008 jumped 32.7 per cent to RM1.65 billion from RM1.24 billion in the same period last year, it said in a filing to Bursa Malaysia on Sept 25.

Earnings per share climbed to 83.73 sen from 57.40 sen previously.

It declared a second interim gross dividend of 17.5 sen per share, higher than 14 sen paid for the same quarter last year.

For the second quarter, Tanjong's pre-tax profit rose 15.4 per cent to RM190.337 million from RM164.987 million a year ago.

Revenue at RM840.286 million was 30.2 per cent better than RM645.221 million previously.

Tanjong said power generation revenue increased 44 per cent to RM1.204 billion in the first half from RM837 million mainly due to the contribution of RM344 million from the Globeleq plants.

The operating profit of the power generation segment however only increased by RM60 million or 17 per cent to RM408 million for the current period due to the recognition of scheduled maintenance expenses totalling RM24 million for the Panglima power plant and non-recurring corporate and other business development costs totalling RM32 million.

Gross sales proceeds from the numbers forecast operations (NFO) fell 3 per cent to RM991 million from RM1.024 billion due to the reduced number of special draws conducted in the current period.

Gaming revenue however increased to RM356 million from RM341 million due mainly to a reduction in the prize payout ratio from 68 per cent to 65 per cent for the period under review.

The current period's lower prize payout increased the gaming segment's operating profit to RM115 million from RM89 million.

Tanjong said the launch of new attractions in the Tropical Islands led to a higher number of visitors and higher average spending per visitor.

This resulted in an increase in revenue by 52 per cent for the leisure segment, accompanied by a reduction of RM14 million in operating loss to RM15 million.

On future outlook, Tanjong said it expects the group to benefit from the continuing investments made to expand its power generation operations.

It said all other businesses of the group should generally perform in line with expectations subject to factors such as the impact of prevailing conditions on discretionary spending on the group's products and services; measures to provide accommodation at the Tropical Islands resort; and the Malaysian Government's review of the energy sector.