Logo of Phnom Penh Post newspaper Phnom Penh Post - PPWSA profit for Q1 down 60 pct over previous year

PPWSA profit for Q1 down 60 pct over previous year

PPWSA profit for Q1 down 60 pct over previous year

Phnom Penh Water Supply Authority (PPWSA) – the first listed company on the Cambodian stock exchange – has recorded a profit of $1.33 million for the first quarter, a decrease of 60 per cent from the same period last year, according to audited financial statements released yesterday.

Ros Kimleang, chief of PPWSA’s accounting and financial department, told the Post yesterday that the reduced profit is due mainly to lower revenues from water consumption and increased spending on the Nirot Water Treatment Plant, where a solar power-generation system is being installed.

“Our instalment budget is higher than our expectation, so it makes net profit down after instalment and paying the interest rate,” he said.

Political turmoil also played a part, according to Kimleang,
who said that construction projects had slowed, meaning weakened commercial demand for water.

PPWSA’s share price closed at 4,760 riel ($1.17) yesterday, up from 4,700 riel ($1.16) on Monday.

Lamun Soleil, deputy director of the market operations department of Cambodia Securities Exchange, said PPWSA’s stock price increase during trade yesterday indicated that investors were not overly concerned about the profit downturn recorded in the first quarter.

Soleil said that whether slow growth by PPWSA’s would have an effect on the company’s stock price came down to expectations.

“If it [PPWSA’s growth] is not much under investors’ expectation, it would not much affect their confidence.”

Svay Hay, president and CEO of Acleda Securities, said he was confident that the firm’s share price was unlikely to be affected by the first-quarter results.

Hay said that PPWSA’s share value was currently near its support price – the level that a stock usually does not fall below, as buyers at that point tend to purchase the stock.

“When the share price of a company reaches the support price, the share is [unlikely to] seriously fluctuate further,” he said.

With the stock hovering around the support price, Hay said investors’ main focus was PPWSA’s annual dividend, which would be based on the firm’s performance over four quarters. PPWSA predicts a rise in profits to $2.4 million in the second quarter, the company’s chief accountant Kimleang said.

MOST VIEWED

  • US names new ambassador to Cambodia

    US President Donald Trump on Friday appointed W Patrick Murphy as the new US Ambassador to Cambodia, replacing incumbent William A Heidt. A press release posted on the White House’s website said nominee W Patrick Murphy is currently acting principal deputy assistant secretary at

  • Kingdom is at a crossroads between East, West after poll

    It was dubbed a success by caretaker prime minister Hun Sen after the electoral victory of his Cambodian People’s Party (CPP), which is poised to take all seats in the National Assembly. But the July 29 national election has not been positively looked at by

  • Chinese influence to sweep Kingdom?

    Growing Cambodia-China ties have seen the latter’s influence sweep across the Kingdom through increased investments and tourism. The Asian giant has become the leading source of foreign funds in Cambodia, fuelling the construction sector with huge casino and hotel projects. Much of the growth

  • Western poll flak is ‘pressure to take the Kingdom hostage’

    After last month’s national elections brought praise for the orderly manner they were run and managed, the ruling Cambodian People’s Party (CPP) spokesman Sok Eysan dismissed criticism from the West as a “violation of the Kingdom’s independence”. He said the attitude of