KUALA LUMPUR (Dec 27): Protasco Bhd has clinched a seven-year road maintenance concession from the Perak state government, a deal which will see the company further expand its road portfolio across the country.
In a statement to Bursa Malaysia on Thursday, Protasco said the contract value for the first two years comes to some RM29.6 million, and the sum is subject to review every two years during the seven-year period.
"The above-mentioned project is expected to contribute positively to the earnings and net assets of Protasco Group from the financial year ending Dec 31, 2013," said Protasco which secured the concession via its subsidiary Empayar Indera Sdn Bhd.
According to Protasco's website, the firm maintains more than 13,500km of roads across the Malaysia. These include concessions from the Selangor and Terengganu authorities for the maintenance of roads in both states. Protasco also maintains federal roads in Sarawak, the website indicates.
The diversified company which undertakes construction, education and property development, has seen its financials improved.
Protasco said last month third quarter net profit tripled from a year earlier as its construction, education and property development units registered higher turnover during the period.
Net profit came to RM17.99 million in the quarter ended Sept 30 against RM6.12 million previously as revenue added 18% to RM206.67 million from RM175.53 million, according to the company.
Protasco said cumulative nine-month net profit rose 57% to RM30.73 million from RM19.54 million a year earlier as revenue increased 7% to RM484.03 million from RM450.44 million.
The firm said a competitive landscape for its engineering services unit and weaker demand for construction material under the group’s trading division will have an impact on its current year financials.