Protasco posts 3Q net profit, declares 0.6 sen dividend

KUALA LUMPUR (Nov 27): Protasco Bhd posted a net profit of RM959,000 for the third quarter ended Sept 30, 2019 (3QFY19), from a net loss of RM801,000 last year.

In a bourse filing, the group posted an ordinary dividend of 0.6 sen, which has an ex-date of Dec 30, 2019 and is payable on Jan 10, 2020.

This quarter's dividend payout has brought Protasco's total dividend payout to date to 1.2 sen.

The higher net profit was despite quarterly revenue shrinking by 3.59% to RM226.46 million, from RM234.88 million in the corresponding quarter last year.

The group attributed the quarterly net profit to a RM700,000 decrease in finance costs and RM500,000 in profits from associate companies.

Meanwhile, the lower revenue was on the back of fewer periodic maintenance works in its maintenance segment, and its engineering services segment undertaking fewer of its geotechnical works.

For the nine months ended Sept 30, 2019 (9MFY19), the group posted a net profit of RM4.95 million compared with a net loss of RM3.9 million.

9MFY19 revenue declined 8.38% to RM581.37 million from RM634.54 million in the corresponding period last year.

In a statement, the group said its higher bottom line was also boosted by continuing cost optimisation and right-sizing exercises, especially for its construction and education segments.

"We expect this turnaround to continue gathering momentum and we are confident that we will return to full profitability in this financial year," said Protasco executive vice chairman and group managing director Datuk Seri Chong Ket Pen.

The group added that its clean energy business will commence works on its Melaka solar plant, which is expected to positively contribute to future earnings and net assets.

Shares in Protasco closed 5.17% or 1.5 sen higher at 30.5 sen, valuing the company at RM147.93 million. The counter saw 5.02 million shares traded.

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