WCE Holdings Posts Wider Net Loss Of RM88.56 Mln In 3Q

KUALA LUMPUR, Feb 26 (Bernama) -- WCE Holdings Bhd, the concessionaire of the West Coast Expressway (WCE) project, logged a wider net loss of RM88.56 million for its third quarter (3Q) ended Dec 31, 2024, amid interest costs incurred for completed sections, which amounted to RM55.4 million in the quarter.

It posted a net loss of RM22.82 million in the corresponding 3Q of the last financial year.

Revenue for 3Q of 2025 financial year ending March 31 (FY2025) is also lower at RM84.24 million as against RM177.67 million previously, the company said in its filing with Bursa Malaysia here today.

For the cumulative nine months, its net loss expanded to RM125.0 million as against RM72.98 million before, while revenue stood at RM310.98 million versus RM524.22 million previously.

WCE Holdings said in a statement that the highway achieved significant growth in toll collection revenue for 3Q FY2025, registering a 144 per cent increase to RM32.6 million from RM13.4 million in 3Q FY2024.

It said the strong performance follows the opening of additional sections, namely Section 1 (Banting – SKVE), Section 6 (Bandar Bukit Raja Utara – Assam Jawa), and Section 11 (Beruas – Taiping Selatan), which have collectively contributed to higher traffic volume.

The project involves the development of a 233 kilometres (km) tolled highway from Banting, Selangor to Taiping, Perak (including 40 km of highway to be constructed later).

It is a build-operate-transfer project with a concession period of up to a maximum of 60 years effective from Dec 20 2013. As at Dec 31, 2024, seven out of 11 sections are already operational, covering 170 km across Selangor and Perak.

Looking ahead, the group anticipates initial losses in the early years of toll operations due to the cessation of interest capitalisation for completed sections, in line with accounting standards. 

However, as additional sections become operational and traffic volume stabilises, the group expects steady growth in toll revenue, leading to improved cash flows and profitability.

-- BERNAMA