ENRA Group Berhad Annual Report 2018

22 E N R A G R O U P B E R H A D ( 2 3 6 8 0 0 - T ) Property Division Financial Performance RM108.3 mil RM120.2 mil RM16.8 mil RM25.9 mil RM32.6 mil RM0.5 mil 23.9% 27.1% 3.0% FYE 2016 FYE 2017 FYE 2018 Revenue Operating Profit Operating Profit Margin In March 2017, ENRA, through its wholly owned subsidiary, ENRA Labuan Sdn. Bhd. signed a sale and purchase agreement to acquire an approximate 60-acre leasehold land in Negeri Wilayah Persekutuan Labuan (“Labuan”) for a sum of RM7.6 million. The land (to be reclaimed), is strategically located in Labuan’s Rancha-Rancha industrial area. ENRA believes the investment presents various interesting and strategic development opportunities. Feasibility studies into each option is still under review. This transaction is envisaged to complete in the second quarter of FYE 31 March 2019. In May 2017, we undertook an exercise to divest our low yielding investment properties in Johor Bahru and Kuala Lumpur. This Divestment Exercise is expected to be completed in the second quarter of FYE 31 March 2019, raising RM85.15 million for the Group. These proceeds raised would be partially utilised to reduce the Group’s gearing from 0.5 times as of FYE 31 March 2018 to 0.3 times and increase ENRA’s cash position for redeployment into new projects, businesses and investments. ENERGY DIVISION The O&G Division comprises of a variety of businesses and ventures of which the largest contributor to revenue and profit contributor is ENRA Kimia. O&G Division Financial Performance Revenue Operating Profit Operating Profit Margin RM14.0 mil RM59.1 mil RM58.5 mil RM2.4 mil RM6.1 mil RM10.0 mil 17.1% 10.3% 17.1% FYE 2016 FYE 2017 FYE 2018 MANAGEMENT DISCUSSION AND ANALYSIS cont’d