Local public-listed power infrastructure provider PESTECH (Cambodia) Plc (PEPC) reported a sharp decrease in total revenue in the January-March period – corresponding to the third quarter of its 2023 financial year – due to the slow progress of some of its projects in the Kingdom.

In its May 25 filing to the Cambodia Securities Exchange (CSX), the Malaysian-owned firm posted total revenue to the tune of 19.160 billion riel ($4.7 million), down 65.3 per cent year-on-year.

“The changes in revenue reflected the execution progress of various projects in Cambodia,” it said.

As of March 31, total assets and total equity stood at 1.203 trillion riel and 97.103 billion riel, up 0.06 per cent and down 11.74 per cent compared to the corresponding figures on June 30 – the end of its 2022 financial year.

“During the quarter, the company managed to register an operating profit at KHR 5.163 billion as compared to KHR 6.445 billion during Q3 [January-March] 2022,” executive chairman Paul Lim Pay Chuan said in the filing.

“However, the company generated a large Loss Before Tax (LBT) of KHR 4.610 billion versus a Profit Before Tax (PBT) at KHR 1.724 billion for the comparative quarter in 2022. Due to higher borrowing cost, the company also reported a higher Loss After Tax (LAT) of KHR 5.290 billion against a Profit After Tax (PAT) of KHR 0.936 billion in Q3 of 2022.

“The management stayed vigilant for a turnaround plan and hope to be able to deliver positive financial results in the future quarter. We continued to always be attentive on various market opportunities in the power infrastructure segment, especially in Cambodia.

“The sustainment of the growth for the Group would be dependent on the capability of the Group to continuously and consistently procure new projects, secure the required financing, and ensure that the execution teams are able to carry out the projects efficiently, and effectively.

“We reassure our shareholders that the Group remains steadfast [in] our commitment to maintain our position as an active participant in the development of power infrastructure projects in Cambodia,” he said.

PESTECH CEO Han Fatt Juan added in the filing that elevated borrowing costs “caught up with us, making it ever harsher to sustain operational activities, and meet project deadlines.

“Project execution progress remained flattish with main activities contributed by the Phnom Penh to Cambodia/Laos Border project together with the JICA- [Japan International Cooperation Agency] funded 230 kV underground cable project.

“We will only be able to deliver a higher level of project execution when [we’ve] had a conclusion of the project financing arrangement and/or funding provision for both projects in a near future.

“In the meantime, the team will rely on its well-equipped machinery and abundance of experience in photovoltaic infrastructure design, engineering, and implementation to offer EPCC [engineering, procurement, construction, and commissioning] and project management service to the growing renewable market in Cambodia.

“We will be steadfast in the promotion of sustainable power development, in support of Cambodian government’s effort to actively integrate renewable energy resources into its energy mix,” he said.

PESTECH listed on the CSX on August 12, 2020, going public via initial public offering (IPO) by issuing 3.9 million shares (5.26 per cent of its total 74,945,000 voting shares) at $0.76 per share, raising approximately $3 million.