Protasco posts nine-month net profit of RM4.5 million

KUALA LUMPUR: Protasco Bhd (Protasco) has posted a lower net profit of RM4.5 million on a 2.8 percent dip in revenue to RM634.5 million for the nine months ended 30 Sept 2018, with its performance affected by high overheads generally, and lower margins in its maintenance segment.

After taking into account minority interests, the group reported a net loss of RM 3.9 million for the period, due to losses at its property development, education and construction segments.

As part of a cost optimisation initiative, among the actions the group is taking is the rationalisation exercise of Infrastructure University Kuala Lumpur’s faculties.

“We are taking measures to reduce the operating overheads of the Education segment to enable it to return to profitability,” said group managing director and executive vice chairman Datuk Sri Chong Ket Pen in a statement.

Protasco will continue to focus on bolstering its Construction and Maintenance segments.

Its Perumahan Penjawat Awam Malaysia (PPAM) Phase 2 project, under the Construction segment is progressing as scheduled and is expected to contribute positively.

The maintenance segment, which holds federal and state road maintenance concessions, remained profitable, but experienced lower profit margin from periodic works. Nevertheless, Maintenance is expected to continue being the Group’s main revenue contributor.

“The group’s prospects in the remaining quarter of 2018 remains challenging, with continued delays expected in the commencement of certain projects and the allocation of funding for maintenance works,” said Chong.

Still, Protasco is hopeful that business environment could be improving, having seen a third quarter profit before taxation of RM8.3 million, which is more than double the profit it posted in the second quarter of RM3.4 million.

For the third quarter, Protasco posted a net profit of RM3.6 million on a revenue of RM234.9 million.