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Protasco eyes 10% to 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 its construction and maintenance segments, said executive chairman/group MD Datuk Chong Ket Pen.

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

“Currently, we are maintaining some 14,000km of federal and state roads under five long-term road maintenance contracts and concessions.

“We also expect a positive contribution from our property development segment,” Chong said after the company AGM yesterday.

For its financial year ended Dec 31, 2012, Protasco’s pre-tax profit rose to RM106.6 million from RM72.2 million in 2011. Revenue rose to RM794 million from RM696 million a year ago.

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

A portion of the revenue is 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.

“Property will contribute over 10% to our revenue,” Chong said, adding that the second phase of De Centrum, with a 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.”

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

“Our consultants are still conducting a due diligence exercise,” said Chong.

The group had earlier announced it was buying 75% of oil and gas outfit, PT Anglo Slavic Indonesia, from PT Anglo Slavic Utama for US$55 million (RM175 million). — Bernama


This article first appeared in The Edge Financial Daily, on June 28, 2013

 

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