PROTASCO’S NET PROFIT SURGES ALMOST THREE TIMES AS COST OPTIMISATION EXERCISE CONTINUES
KAJANG, 27 NOVEMBER 2019: Protasco Berhad saw its nine-month net profit nearly triple to RM13.1 million from RM4.5 million for the year ending 31 December 2019.
The Group’s pre-tax profit for the nine months surged by 71.3 percent to RM27.5 million despite a dip of 8.4 percent in revenue to RM581.4 million. This performance arose from the group’s continuing cost optimization and right sizing exercise, especially in the Construction and Education segment.
“We expect this turnaround to continue gathering momentum and we are confident that we will return to full profitability in this financial year,” said Dato’ Sri Ir Chong Ket Pen, Executive Vice Chairman and Group Managing Director.
The cost optimization exercise, which was initiated in 2018, has continued to drive improved results at the Group.
Meanwhile, Protasco’s Clean Energy business will commence works on its solar plant in Melaka, which is expected to contribute positively to the future earnings and net assets of the Group.
For the third quarter, Protasco’s net profit rose by 24 percent to RM4.5 million from RM3.6 million in the same period last year, while pre-tax profit increased by 18.1 percent to RM9.8 million, on the back of a marginal 3.6 percent dip in revenue to RM226.5 million from RM234.9 million in the same period last year.
Protasco’s construction segment was the main contributor to the Group revenue in the third quarter, posting a 35 percent jump to RM109.3 million, arising from the ongoing Perumahan Penjawat Awam (PPA) Phase 2 project in Putrajaya.
Compared to the second quarter, revenue in the third quarter was higher at RM226.5 million due to an increase in periodic works awarded to the Maintenance segment. Its Education segment also saw improvement in revenue from a higher student intake.