Tuesday, Apr 15, 2008
MARC has assigned its MARC-1ID/AA-ID ratings to WCT Engineering Berhad’s (WCT) RM300 million Islamic Commercial Papers / Islamic Medium-Term Notes Programme (ICP/IMTN). The rating outlook is stable. Proceeds from the issuance will be used for capital expenditure, general working capital requirements and to redeem any outstanding bonds issued in 2005. This issuance follows a recent RM300 million Sukuk with Warrants Programme issuance on 26 March 2008. The ratings continue to reflect its strong construction and civil engineering capabilities, an order book which reflects favourable project and geographical diversification and provides earnings and cash flow visibility for the next two years, and its overall solid financial profile.
WCT is principally involved in civil engineering and construction works with projects in Malaysia, Bahrain, Qatar, Abu Dhabi and Dubai. The Group is also involved in property development and property investment through its wholly owned subsidiary, WCTL. WCTL’s flagship development is Bandar Bukit Tinggi in Klang.
As a top tier domestic construction player which has successfully established a credible track record and reputation abroad especially in the Middle East, WCT’s ‘hands-on’ project management approach, utilisation of experienced personnel and strong foreign partners have enabled it to manage risks on its overseas projects. Nevertheless, rising raw material prices and higher execution risks associated with mega projects remain key challenges for WCT.
WCT recorded strong unaudited results for FY2007 with a doubling in revenue and 77% increase in profit before tax as compared to FY2006, attributed to a significant increase in construction activity, particularly in the Middle East.
The stable outlook reflects expectations that WCT will maintain a strong business and financial profile consistent with the rating. Rating stability will also depend on WCT’s ability to maintain a moderate capital structure and good financial flexibility.
15 April 2008
WCT is principally involved in civil engineering and construction works with projects in Malaysia, Bahrain, Qatar, Abu Dhabi and Dubai. The Group is also involved in property development and property investment through its wholly owned subsidiary, WCTL. WCTL’s flagship development is Bandar Bukit Tinggi in Klang.
As a top tier domestic construction player which has successfully established a credible track record and reputation abroad especially in the Middle East, WCT’s ‘hands-on’ project management approach, utilisation of experienced personnel and strong foreign partners have enabled it to manage risks on its overseas projects. Nevertheless, rising raw material prices and higher execution risks associated with mega projects remain key challenges for WCT.
WCT recorded strong unaudited results for FY2007 with a doubling in revenue and 77% increase in profit before tax as compared to FY2006, attributed to a significant increase in construction activity, particularly in the Middle East.
The stable outlook reflects expectations that WCT will maintain a strong business and financial profile consistent with the rating. Rating stability will also depend on WCT’s ability to maintain a moderate capital structure and good financial flexibility.
15 April 2008