Protasco returns to profitability

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KUALA LUMPUR: Protasco Bhd returned to the black in the financial year ended Dec 31, 2015, achieving earnings of RM66.24mil compared with a loss of RM46.44mil previously.

The road construction and maintenance firm told Bursa Malaysia that 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.

“However, taking aside the impairment, the group registered a growth of 16.0% compared to the same period in the last preceding year, mainly from the contribution of the construction segments,” it said.

Revenue for the year grew 21.5% to RM1.29bil, with the biggest growth contributed by the construction segment.

The construction segment’s profit before tax doubled to RM16.2mil mainly due to the contribution from Phase 1 of the 1Malaysia Civil Servants Housing (PPA1M) project in Putrajaya, which was 52% completed.

Pre-tax profit from the property development segment rose from RM12mil in 2014 to RM12.78mil last year.

However, the engineering services as well as the trading and manufacturing segments recorded lower pre-tax profits. 

For the fourth quarter, Protasco swung to earnings of RM20.02mil from a loss of RM4.07mil a year earlier, on 15.7% higher revenue of RM455.89mil.

On its prospects for 2016, Protasco said the construction and property development industries were expected to experience a slowdown.

However, its board anticipated that the group’s earnings would remain sustainable.

“The maintenance segment will continue to give steady income to the group, while the construction segment’s contribution is expected to grow with the award of Phase 2 of PPA1M project,” the company said.

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

Protasco shares gained 4 sen to close at RM1.50 on Wednesday, with 863,400 shares traded.