KAJANG, 27 February 2020: Protasco Berhad recorded a fourth straight quarter of profit and returned to the black with a full-year net profit of RM19.1 million despite a lower revenue for the financial year ended 31 December 2019.
The Maintenance, Construction, Property, Trading and Education business segments recorded improvement in its financial performance and contributed to the full-year Group pre-tax profit of RM34.6 million in 2019 against a pre-tax loss of RM23.9 million in the previous financial year. This favourable result was achieved despite lower revenue of RM823.6 million in the current financial year as compared to RM904.9 million in the previous financial year.
Profit after tax for the quarter is RM5.9 million as compared to a loss after tax of RM42.1 million recorded in the preceding corresponding quarter.
The Group’s current quarter and full-year favourable financial performance revealed the continuing positive impact of its right-sizing exercise which includes cost optimisation efforts that generated better margins.
“This turnaround is proof that our hard work is paying off and we hope to carry this positive momentum for the long term. We want to capitalise on our fundamentals and ensure a sustainable footing for the long run, so that we could give our best to our stakeholders,” said Dato’ Ir Kenny Chong Ther Nen, Protasco’s newly appointed Group Managing Director.
Protasco’s revenue for the fourth quarter, however, slid by 10 percent to RM242.2 million resulting in a lower full-year revenue of RM823.6 million as compared to RM904.9 million in the previous financial year due to lower contributions received from the Perumahan Penjawat Awam (“PPA”) Phase 2 Project under its Construction business segment which is expected to be completed by early second quarter 2020.
The construction of its solar plant in Melaka has commenced and is expected to be completed in the fourth quarter of 2020. Upon completion, it will immediately begin commissioning electricity to Tenaga National Berhad (“TNB”). It is expected to contribute positively to the Group’s earnings. Protasco through its subsidiary I2 Solarpark One Sdn Bhd has a 21-year power purchase agreement with TNB.