Protasco eyes 10-15% profit growth this year

KAJANG: Construction and property group, Protasco Bhd, aims to increase its profit by between 10 and 15% this year, boosted by the construction and maintenance segments, said executive chairman/group managing director, Datuk Chong Ket Pen.

He said the construction and maintenance segments, which contributed RM577 million and RM104 million respectively to its revenue last year, will continue to perform better.

"Currently, we are maintaining some 14,000 km of federal and state roads under five long-term road maintenance contracts and concessions. We also expect positive contribution from the property development segment," he told reporters after the company's annual general meeting here today.

For financial year ended Dec 31, 2012, its pre-tax profit rose to RM106.557 million from RM72.204 million in the same period of 2011. Its revenue rose to RM793.895 million from RM695.985 million a year ago.

Chong said the newly-launched mixed development in Kajang, De Centrum, with gross development value (GDV) of RM240 million, will be completed in 2015.

A portion of the revenue was expected to be recognised this year from the completion of the first phase of the project. The first phase features a 20-storey low-density serviced apartment tower, a three-storey retail mall and shops, an eight-storey above ground car park and a 12-floor small office home office tower located near here.

"Property business will contribute over 10% to our revenue," he said, adding that the second phase of De Centrum, with GDV of RM400 million, will be launched by the middle of next year.

"If the second phase's sales are encouraging, we will start the third phase," Chong said.

He said the company will decide on the acquisition of the oil and gas business in Indonesia by October.

"Our consultants are still in the process of conducting due diligence exercise," he said.

The group had announced that it was acquiring 75% of oil and gas outfit, PT Anglo Slavic Indonesia, from PT Anglo Slavic Utama for US$55 million. - Bernama