Press Release

Kajang, 27 February 2018: Protasco Berhad has seen its fourth quarter net profit grow more than 15 times to RM17 million from RM1.1 million for the three months ended 31 December 2017, driven by additional periodic roadworks awarded to its road maintenance division.

The maintenance, construction, engineering and property group also saw its pre-tax profit jump 682 percent to RM26.3 million, on the back of a 10.4 percent jump in fourth quarter revenue to RM313.6 million against RM284.1 million in the previous corresponding period.

The maintenance division saw its pre-tax profit surge eight times to RM25 million for the quarter, from RM3.1 million in the same quarter before, following a 10.1 percent rise in its revenue to RM207.6 million.

“We expect the Maintenance division to continue to drive the Protasco group’s revenue, underpinned by rising government spending on road and infrastructure maintenance,” said Executive Vice Chairman and Group Managing Director Dato’ Sri Chong Ket Pen.

“We are also optimistic that contribution from our Engineering Services division will continue to grow,” he added. For the quarter, the Engineering Services division, comprising the Kumpulan Ikram group, posted a profit of RM3.4 million on revenue to RM49.6 million.

For the full year ended 31 December, 2017, the Engineering Services division saw its pre-tax profit more than quadruple to RM11.3 million on a 32.3 percent jump in revenue to RM101.4 million.

This was attributable to increased revenue from highway and transportation as well as soil investigation services.

Meanwhile, the Protasco group maintained its profitability with net profit roughly unchanged at RM50.4 million for the year, against RM52.5 million in 2016. This performance followed a 13 percent drop in revenue to RM966.8 million, which was partly attributable to the completion of Phase 1 of its Perumahan Penjawat Awam 1Malaysia (PPA1M) project in the first quarter of 2017.

“Phase 2 of our PPA1M project in Putrajaya commenced in the second quarter of 2017, and is expected to contribute positively going forward,” said Chong. The group’s property development arm also is planning a second quarter launch for its Telipot apartment development project in Kota Bharu, Kelantan, with an estimated GDV of RM 166 million.

For more information, please refer to announcement dated 27 February 2018 on Bursa Malaysia’s website.