Press Release

Kuala Lumpur, 29th August 2014: Protasco Berhad saw its profit after tax jump 37 percent to RM36.9 million for the first half of 2014 on significant earnings growth in its property development and construction divisions.

This rise in profit came on the back of a 5 percent growth in total group revenue for the six months ended 30 June 2014 to RM348.7 million from RM330.7 million.

For the first half, earnings per share rose to 8.10 sen from 6.48 sen previously, while the net cash position increased to RM110.7 million from RM98.9 million.

“We are confident of maintaining Protasco’s growth momentum for 2014. We anticipate 2014 will be the best year since listing, mainly due to stellar growth from our construction and property development divisions.”

“Our road maintenance segment remains as the core of the Group’s diversified stream of income,” said Dato’ Sri Ir Chong Ket Pen, Executive Vice Chairman and Group Managing Director of Protasco Berhad.

The property development division’s pre-tax profit for the first half rose by almost five times to RM6.72 million from RM1.2 million.

Accelerated progress from Protasco’s De Centrum City mixed development project contributed to improved revenue in the second quarter of 2014, which grew almost five times to RM21.7 million from RM3.8 million previously.

Chong added, “We are able to maximise revenue and profits from property development as De Centrum Phase 1 is fully sold while the recently launched Phase 2A, comprising 320 apartments units received good response. Phase 2A is expected to generate a gross development value (GDV) of approximately RM220 million.”

Total estimated GDV for De Centrum City is RM10 billion over the 10 to 15 years development. The Group’s property development division has plans to launch at least RM200 million worth of projects per year under De Centrum City.

The construction division’s pre-tax profit for the first half was RM4.1 million, almost three times the RM1.5 million pre-tax profit posted before. Revenue more than tripled to RM52.3 million from RM15.5 million previously.

“On-going projects secured in mid 2013 and an order book of over RM700 million contributed to growth in the construction segment,” said Chong.

The recent termination of Protasco’s acquisition of the oil and gas company in Indonesia has no effect on the existing business activities.

“The O&G venture was a business opportunity where we saw upside during the bidding process. It was part of Protasco’s diversification plan. We will continue to look for new opportunities to diversify,” said Chong.