SILK Holdings Bhd says its Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd would raise the toll for cars using the SILK HIghway to RM1.80.
PETALING JAYA: Silk Holdings Bhd's proposed disposal of its highway asset will result in a significant change in contribution to the company, said executive chairman Datuk Mohd Azlan Hashim.
"After the disposal, we will have the flexibility to look into areas that we think we have opportunities to grow," he told reporters after the AGM on Friday.
The highway concession holder had signed a heads of agreement earlier to dispose of its entire equity interest in Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK), to WZ Satu Bhd for RM368mil.
Mohd Azlan said SILK would now focus on the oil and gas (O&G) support services division, as well as other marine logistics-related business.
The O&G support services division would remain as the key contributor to the company's revenue, having contributed 67% for the 17 consecutive months as of financial year ended Dec 31, 2015.
"The O&G segment contributed a large portion to the country's economy.
"Hence, as long as there are big players involved in the industry, there are still opportunities for the O&G support services companies like us," he said.
Currently, SILK Holdings has 20 offshore support services vessels.
It had acquired three oil/chemical tankers in December 2015 as a move to diversify into other marine logistics-related business.
Asked if the focuses of SILK Holdings as well as the highway sale would turn the company around, Mohd Azlan said, it depended on the market.
SILK Holdings suffered a pre-tax loss of RM10.08 million in the first quarter ended March 31, 2016 on revenue of RM80.75 million due to the weak O and G sector and the highway concession assets amortisation.
It had earlier announced that it has changed its financial year end from July 31 to Dec 31, effective from the financial period ended 2015. - Bernama
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