Tycoon Kith Meng’s Royal Railway Plc, which issued two corporate bonds last year, witnessed a wider net loss at $1.8 million in its fourth quarter ended December 31, 2022 (Q422) compared to a net loss of $323,948 last year.
The bigger losses were mainly attributed to an increase in the cost of service and operating expenses amounting to 2.6 billion riel (approximately $630,031), which is equivalent to 20.84 percent of the total loss, as well as the allowance of provisions for expected credit losses amounting to 1.06 billion riel, although its comparatively lower than Q421.
Revenue came in 16.3 percent lower at $2.2 million compared to $2.6 million in the corresponding period last year due to a slowdown in the fuel transport sector, its filing with Cambodia Securities Exchange showed today. “The slowdown was caused by a shortage of fuel supply to Cambodia.”
Net loss expanded to $4.1 million in its full financial year ended December 31, 2022, from $748,978 net loss last year, while revenue rose 9.1 percent to $10.2 million from $9.4 million.
The company operates passenger and freight railway networks to the northern and southern parts of the country. Its core business involves freight services, such as delivery of fuel, cement, ballast and bulk rice, and containerised freight, warehousing, and customs and excise clearance.
Royal Railway’s first corporate bonds, which raised 41 billion riel (around $10 million), has a 10-year maturity period with a coupon rate of seven percent per annum.
The second bond, broken into two tranches, is guaranteed by GuarantCo Ltd as a private placement bond to qualified investors with two series of bonds.
As of December 31, 2022, the carrying value of two bond payables are $33.3 million, while accrued interest payment amounted to $233,763.