KUALA LUMPUR (July 26): Tasek Corp Bhd has registered its third consecutive quarter of losses, as it posted a net loss of RM4.65 million for the three months ended June 30, 2018 (2QFY18), compared with a net profit of RM1.49 million a year ago, due to its loss-making cement business.

Its quarterly revenue was down 1.04% to RM133.57 million, from RM134.98 million in 2QFY17, as its ready-mixed concrete segment reported lower sales volume, as well as lower average net selling price for both cement and ready-mixed concrete, it said in a filing with Bursa Malaysia today.

Additionally, Tasek Corp explained that the rising costs of production for its cement segment and lower interest income, further affected the group’s performance in the current quarter.

Tasek Corp said however that higher share of profit from its associate company in the current quarter, had partly mitigated the group's losses.

Losses at its cement segment widened to RM7.4 million in 2QFY18, from RM1.3 million last year.

“Higher local demand for cement was registered during the current quarter, while price competition remained intense with average net pricing under pressure, hence contributing to the lower sales margin,” Tasek Corp said, adding that higher production costs arising from rising electricity and fuel costs also affected the segment's performance.

For its cumulative six months ended June 30, 2018 (1HFY18), Tasek Corp reported a net loss of RM9.08 million, against a net profit of RM5.05 million last year. Revenue was marginally higher by 0.97% at RM269.3 million, from RM267.31 million a year ago.

Looking ahead, Tasek Corp said the board viewed the near-term to remain challenging, with prolonged cement price competition, amid overcapacity and subdued demand from lower construction activities.

Shares of Tasek Corp closed one sen or 0.14% higher at RM7.03 today, for a market capitalisation of RM860.12 million. Year-to-date, the stock plunged about 40.32% from RM11.78.