KUCHING: Borneo Oil Bhd group has suffered huge group after-tax loss of RM90.8 million in fourth quarter ended June 30, 2025 (4Q2025) on revenue of RM22.1 million due mainly to a fair value loss of RM81 million in Verde Resources Inc (OTC Markets: VRDR) in the US.
“Despite this temporary valuation setback, the company remains confident in VRDR’s long-term outlook, and expects a potential rebound in its market performance,” Borneo said in explanatory notes to its financial results.
The Head Office and Others segment incurred a pre-tax loss of RM85.84 million in the current quarter under review (4Q2024:+ RM224.18) due to the fair value loss in VRDR.
The Food and Franchise operations (FFO) segment revenue fell to RM17.3 million (RM19.55 million) due to weaker market sentiment. The segment reported pre-tax loss of RM3.77 million (-RM3.8 million) largely attributable to an accounting adjustment for RM2 million in share-based payment expenses under the Employee Share Option Scheme (ESOS), said Borneo, which owns home-grown fast food restaurant chain SugarBun.
Despite the poor performance, the group’s number of food outlets increased by 11 to 143 from 132 year-on-year.
The Property Investment & management segment saw its revenue dropped to RM0.26 million (RM1.07 million) due to lower activity following the completion of project management services for the integrated limestone processing plant (ILPP). But the segment sharply narrowed its pre-tax loss to RM4.41 million (-RM44.15 million), thanks to lower impairment charges on an associate company.
On the other hand, the Resources & Sustainable Energy segment did well, with its revenue surged to RM4.51 million (RM1.54 million), driven by raw material supply to the ILPP.
The segment improved performance was further supported by the reversal of impairment loss on trade receivables of RM3 million as compared to the prior year’s impairments of RM8.63 million on trade and other receivables and RM11 million on property, plant and equipment.
In the immediate preceding quarter (3Q2025), Borneo reported lower pre-tax loss of RM70.4 million (4Q2025:-RM90 million) on lower revenue of RM20.7 million (RM22.1 million).
In FY2025, Borneo sank into the red with group after-loss of RM301 million from profit of RM36.33 million in FY2024 despite increase in revenue to RM81.65 million from RM78.56 million.
On prospects for the new financial year, Borneo said global growth prospects remain clouded by shifting trade policies, tariff uncertainties and geopolitical tensions.
“Nonetheless, Malaysia’s economy is projected to expand between 4 per cent and 4.8 per cent in 2025 through the outlook remains sensitive to global developments.
“Despite these challenges, the group remains focused on its strategy of targeted expansion in growth sectors, technology adoption to enhance efficiency, and cost optimisation to secure a sustainable revenue stream,” it added.
