It is aggressively expanding its operations, especially in the Middle East, and is looking to secure even more large contracts there.
For the past two to three months (July – Oct 2008) the company had tendered for RM4bil worth of projects in the Middle East and hoped to win some sizable contracts.
The Middle East, especialy Dubai, has been good for its IFO business. Since making its presence there back in 2004, LCL’s business has expanded by leaps and bounds. The company sees the region as a place for long-term growth opportunities, despite the current sharp fall in oil prices, which could possibly slowdown the development pace in the oil- rich nations.
Since expanding its IFO business into the Middle East, LCL has not rested on its laurels and has made significant inroads into other countries such as Kazakhstan, India, Qatar, Dubai, Singapore and Brunei and plans to venture into the North American market soon .
Currently about 80% of LCL’s revenue is derived from the Middle East, Kazakhstan (15%), India (2%) and the balance 3% from Malaysia.
Currently there were about RM500mil to RM600mil worth of IFO contracts in-hand to be completed.
Financial Results …
For the six months ended June 30, LCL posted higher pre-tax profit of RM16.7mil on revenue of RM201.2mil, compared with RM107.28mil and RM10.91 pre-tax profit in the corresponding period a year earlier.
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