Protasco contract to maintain federal roads extended 10 years - Business News | The Star Online


Protasco contract to maintain federal roads extended 10 years

KUALA LUMPUR: Protasco Bhd ’s subsidiary, Roadcare (M) Sdn Bhd has secured a 10-year extension to its concession to maintain the federal roads in Peninsular Malaysia.

The road construction and maintenance company said on Monday it had received a letter from the government for the extension of the concession which comprised an interim period of two years from Feb 17, 2016 to February 2018. This would be based on the same terms and conditions of the existing concession.

There will be an eight-year concession from Feb 17, 2018 till Feb 16, 2026 based on the performance based contract.

“The concession is expected to contribute positively towards the group’s results for FY ending Dec 31, 2016,” it said.

In FY ended Dec 31, 2015, Protasco returned to the black and reported earnings of RM66.24mil compared with a loss of RM46.44mil previously.

The improvement was mainly due to the impairment loss provided on the investment of PT Anglo Slavic Indonesia and deposits paid for trading in coals during the last preceding year.

Excluding the impairment, the group registered a growth of 16.0% on-year, mainly from the contribution of the construction segments. Revenue for FY15 grew 21.5% to RM1.29bil, with the biggest growth contributed by the construction segment.

In December last year, the company was awarded a RM300.5mil contract to build 1,000 houses in Putrajaya under the 1Malaysia Civil Servants Housing (PPA1M) programme.

Corporate News , Construction