PPSEZ releases Q4 financial report

Phnom Penh Special Economic Zone registered solid growth in its fourth quarter filings, despite the pandemic's impact on the Kingdom's manufacturing sector. KT/Siv Channa

The Phnom Penh Special Economic Zone (PPSEZ) saw year-on-year revenue grow by nearly 36 percent to more than $4.2 million, according to its quarterly report released on Monday.

The firm reported an unaudited pre-tax profit of $560,793, marking a 26 percent gain over the same period in 2019.

Total assets increased slightly to $94.947 million, while total liabilities remained largely unaffected, remaining in the $38.8 million range.

According to the year-end report, the firm had more than $1.622 million in liquid assets, up from $1.433 million in 2019. The firm paid in excess of $388,000 in interest expense on loans during the three-month period. Total interest on loans accounted for more than $1.45 million of the firm’s financial costs incurred during 2020.

Earnings per share decreased significantly over the 12-month period, falling to $0.01 from the $0.20 cents achieved in 2019.

PPSEZ share prices saw a steep 47.5 percent decline over Q4, falling from $0.55 to $0.29 by the quarter’s end.

PPSEZ’s shares price fell 30 riels per share Monday following the report’s release. It closed at 1,510 riels ($0.37) per share at the end of Monday’s trading on the Cambodia Securities Exchange (CSX). This reduced the company’s market cap over the course of the day by $528,947 to $26.61 million.

Despite the ongoing pandemic and its impact on manufacturing, the report did show that income revenue from rentals in the PPSEZ increased during the quarter.

Rental income increased by more than $1 million from the same period in 2019, bringing in over $517,000 of revenue for the firm. Income from the sale of land was the firm’s largest revenue generator for the quarter, exceeding $2.28 million. Services rendered to firms operating in the PPSEZ generated $857,000.

The company derived $548,000 in rental income from Colben Energy (Cambodia), which operates a heavy fuel oil-fired power plant in the area. Colben in turn was paid $429,010 by PPSEZ for electricity purchases.

PPSEZ is among 17 operating special economic zones in Cambodia. There are a total of 36 zones approved for operations in the Kingdom in the future.

The firm announced earlier this year that it had established three new subsidiaries. These include PPSEZ II, a second with Sahas Property Co Ltd for further property development and a third with Japanese firm Gomi Recycle (Phnom Penh) Co Ltd in a partnership for solid waste management.

The report was reviewed by Baker Tilly (Cambodia) Co Ltd. The firm said that because reviews cover less in scope than audits, it was not aware of any significant matters that might be identified in a more comprehensive audit.

Shares of PPSEZ, which trade under the ticker PPSP on the Cambodia Securities Exchange, finished yesterday’s trading up 20 riels to close at 1,530 riels per share ($0.38). Khmer Times