Protasco Bhd posted a RM4.3 million pre-tax profit on a 19.1 percent rise in revenue to RM157.5 million for the first quarter, underpinned by higher contributions from its maintenance division.
An increase in periodic road works helped the maintenance division more than double its pre-tax profit to RM10.2 million for the first quarter ended 31 March 2018, compared to RM4.8 million in the same quarter last year.
The division’s revenue grew almost 90 percent to RM95.8 million, from RM50.4 million before, Protasco said in an announcement to Bursa Malaysia.
“We expect the maintenance division to continue to be our main revenue driver,” said Executive Vice Chairman and Group Managing Director Datuk Seri Ir. Chong Ket Pen. “We also see the engineering services segment to contribute to the group’s overall profit for the year.”
Work is expected to accelerate on Phase 2 of the Perumahan Penjawat Awam (PPA) project in Putrajaya in subsequent quarters, growing the construction segment’s contributions. Slow progress at Phase 2 contributed to the lower segmental revenue of RM32.5 million in the first quarter, compared to the same quarter last year which was augmented by PPA Phase 1.
“Going forward, we expect our overall business performance for the year to be challenging. We see some improvement in sentiment with the abolishment of GST which will contribute to more positive operating conditions,” he said.
Protasco said its second dividend of 2.5 sen for the year ended 31 December 2017 will be paid to shareholders on 3 July 2018.