Tanjong ... Aug 09

TANJONG PLC's Net Profit for 1QE Apr 30, 2009 dipped 4.76% to RM191.4m from a year earlier, as it recorded, among others, a Net Investment Loss of RM3.0m versus Net Investment Income of RM74.3m in 1QE Jan, 2009. Revenue surged 20.91% to RM978.8m from a year earlier, the Company said in an EXCHANGE filing on Jun 29, 2009.

The Company in an EXCHANGE filing on Jun 29, 2009 also said that the PAT for 1QE Apr 2009 of RM269m was higher than the RM148m recorded in 2008 - mainly due to the recognition in the preceding quarter, of RM141m financing costs relating to loan facilities on two Egyptian plants, PORT SAID EAST POWER sae and SUEZ GULF POWER sae.

DIVIDEND DECLARED
EPS fell to 47.47 sen from 49.84 sen and it proposed a dividend of 17.5 sen.

" .... Net Investment Income decreased mainly due to the recognition, in the corresponding quarter, of investment gains from the disposal of the Group's interest in UK-based broadcast transmission and wireless site-leasing infrastructure unit - ARQIVA amounting to RM62m.

POWER GENERATION
The Company said that revenue from its power generation business rose 21% to RM693m, due to higher capacity and energy payments from its Malaysian power plants, leading to a 33% rise in the business' Operating Profit to RM265m.

NUMBERS FORECASTING
Gross Sales proceeds from its numbers forecast operator business increased marginally to RM530m from RM520m, as a result of two additional draws conducted in the current quarter. " .... There was a reduction in NFO prize payout ratio from 64% to 63%. The Operating Profit of the gaming segment remained at around RM62m with an increase in totalisator expenses in the Racing Totalisator business ...." it said.

LEISURE DIVISION
The leisure segment saw improved attendances and spending at its Tropical Islands (TI) project in Germany, as well as contributions from TGV CINEMAS sb, which became a 100%-owned unit on Jul 31, 2008, which resulted in a RM39m Revenue increase to RM74m.

GOING FORWARD
Going forward, TANJONG said Group revenues and earnings would continue to benefit from the investments made to expand its power-generating activity.

The Company also added that while its other businesses " ....should generally perform in line within expectations ....", this would be subject to factors including the Malaysian government's efforts to restructure the power sector, which could impact its power generation unit, POWERTEK sb.

TANJONG also said its gaming business could be impacted by the prevailing conditions affecting discretionary spending on its gaming products and services, as well as measures taken to reduce totalisator expenses in the racing totalisator business.

On the Company's 'Tropical Islands' investment, the venture had in Apr 2009 successfully entered into Agreements with third parties who would independently finance the construction and development of vacation homes, and market the rental of these homes throughout Europe, to cover its growing market for short-term family vacations. The Agreements were conditional upon the relevant parties procuring appropriate financing to complete the project. " .... The initial phase of development is targeted for finalisation by Dec 2011, and it is expected that this will bring about a gradual increase in visitor attendances and revenue ..... However, if financing cannot be obtained, and/or if construction is significantly delayed, the Group will need to re-assess the appropriateness of the carrying value of its investment in TI ...." it said.