KOTA KINABALU: Suria Capital Holdings Berhad (SuriaGroup) reported a total revenue of RM43.9 million and a gross profit of RM800,000 for the fourth quarter of fiscal year 2024 (4QFY24), marking a significant decline from RM67.6 million and RM18.2 million, respectively, in the same quarter last year.
The downturn was primarily attributed to a shift in accounting treatment following the transfer of management control of Sapangar Bay Container Port (SBCP) operations to global port operator DP World Sabah. Additional contributing factors included adjustments related to unwinding discounts and an impairment loss from a joint venture partner.
Annual Performance Holds Steady Despite Q4 Slump
Despite the Q4 setback, SuriaGroup maintained a steady financial performance for the full fiscal year, posting total revenue of RM268.2 million—only a 4% decline from FY23’s RM278.4 million. The Group even saw a slight improvement in gross profit, rising to RM78.0 million from RM77.8 million in the previous year.
In September 2024, SuriaGroup finalized its agreement with DP World, a strategic move aimed at enhancing the operational capacity of SBCP and strengthening its role in regional trade. While immediate financial gains from this partnership remain limited, the long-term outlook remains optimistic.
Cargo and Container Volume Take a Hit
Cargo throughput in 4QFY24 fell by 10% to 5.1 million metric tonnes compared to 5.7 million metric tonnes in the same quarter last year. Meanwhile, annual cargo throughput saw only a marginal 0.4% dip, decreasing from 21.5 million metric tonnes to 21.4 million metric tonnes, largely due to reduced bulk oil volume at the Sabah Oil & Gas Terminal (SOGT) sufferance wharf.
A more drastic decline was seen in total TEUs (twenty-foot equivalent units) handled, which plunged by 66% to 37,478 TEUs from 110,595 TEUs in 4QFY23. However, this was due to the exclusion of SBCP’s container volume from SuriaGroup’s financial reporting. When factoring in SBCP’s figures, the full-year TEU volume saw only a moderate decline of 10%, from 428,313 TEUs in FY23 to 386,293 TEUs in FY24.
Dividend Declared Despite Market Challenges
Despite headwinds, SuriaGroup reaffirmed its commitment to shareholder value by declaring a 1.5% interim single-tier dividend, resulting in total payouts of RM5.19 million. This move reflects the Group’s resilience and continued dedication to delivering returns while maintaining investor confidence.
Big Bets on Jesselton Docklands and Future Growth
Looking ahead, SuriaGroup remains optimistic about its growth trajectory in 2025. A key highlight in 2024 was the Group’s strategic joint venture with BEDI Development for the Jesselton Docklands project, a crucial component of the broader Jesselton Waterfront City masterplan.
The first phase, Jesselton Dockland 1, is set to break ground in 2025 on a 2.543-hectare site, offering a vibrant urban waterfront experience. This will be followed by Jesselton Dockland 2 in 2029, unlocking an additional 11.54-hectare prime parcel within the Kota Kinabalu Port area.
At the same time, SuriaGroup is advancing the second phase of the Jesselton Quay development in collaboration with SBC Corporation Berhad, with construction slated to begin in early 2025.
Transforming SBCP Into a Key Trade Hub
Although TEU volumes dipped in 2024, SuriaGroup remains bullish about the long-term benefits of its joint venture with DP World, which is expected to transform SBCP into a major trade hub within the BIMP-EAGA region. The port is well-positioned to capitalize on Sabah’s expanding manufacturing sector, fueled by substantial foreign direct investments from SK Nexilis, Kibing Group, and other major players.
Beyond port operations, SuriaGroup’s diversified business segments—including property development and leasing, logistics, bunkering services, contract engineering, and ferry terminal operations—continued to generate stable revenue, bolstered by economic recovery and rising tourist arrivals.
As the Group moves into 2025, it remains focused on strengthening its market position through strategic developments and expansion initiatives, ensuring sustained growth in the years to come.
