Press Release

KUALA LUMPUR, 26 FEBRUARY 2015: Protasco Berhad’s revenue passed the RM1 billion mark for the first time, growing by 8 percent to RM1.04 billion for the year ended 31 December 2014.

The growth in revenue drove a 15 percent jump in its annual operating profit to RM123.24 million, from RM107.15 million before.

After impairment for a coal trading investment and its oil and gas investment in PT Anglo Slavic Indonesia (PT ASI), it showed a pre-tax profit of RM15.80 million for the year, and a net loss of RM19.48 million.

“We are being pro-active in managing the impact of PT ASI matter as well as the coal trade investments on Protasco and are making a full impairment of RM103.5 million for the financial year,” said Dato’ Sri Ir Chong Ket Pen, Executive Vice Chairman and Group Managing Director of Protasco Berhad.

“With the matter now in court, any future impact on Protasco will be isolated and will not affect performance and ongoing operations,” he said.

“Protasco has continuously been profitable since listing and our dividend payout has averaged between seven to 10 sen yearly. The company has delivered steady profits for the last 11 years and has strong cash flows and good reserves. This matter is only a temporary setback,” added Chong.

For the quarter, Protasco posted a net profit of RM4.8 million on revenue of RM375.3 million. The lower profit was due to the impairment for the coal trading investment under Protasco’s trading division.

With its strong cash flow and continuing operational growth, Protasco has declared a five sen interim dividend in the previous quarter, maintaining its dividend payout policy.

“Protasco’s maintenance, construction, engineering and property development divisions continue to show improved operating profit,” said Chong.

The construction division pre-tax profit for the full year jumped over six times to RM31.6 million from RM4.6 million previously.

Protasco’s De Centrum City mixed development project contributed to improved property development division pre-tax profit for the full year, which rose to RM10.0 million from RM6.1 million before.

Total estimated gross development value (GDV) for De Centrum City is RM10 billion over the 10 to 15 year development. De Centrum Phase 1 GDV is expected to generate a GDV of RM280 million and Phase 2A a GDV of RM220 million.

“De Centrum City 100 acres is fully paid up and we can plan our launches according to market needs,” said Chong.

Protasco’s engineering division pre-tax profit for the full year increased by 26 percent to RM15 million from RM11.9 million previously.

“We see continued demand for Protasco’s engineering expertise in geotechnical and pavement evaluation works, which gives us a better profit margin,” added Chong.