KUALA LUMPUR (November 25): Protasco Bhd, which is currently embroiled in shareholder tussle, dipped into the red with net loss of RM69.2 million in its third quarter ended Sept 30, 2014, compared with net profit of RM13 million, due to a full provision for its investment in PT Anglo Slavic Indonesia (PT ASI).

The investment in PT ASI is, indeed, the root cause of the shareholder fight.

Revenue for the quarter rose 27% to RM319.0 million from RM251.0 million in the year before. Despite making a loss, Protasco maintained an interim single tier dividend payout of five sen per share for the year ending Dec 31, 2014.

The group’s loss per share for the quarter stood at 20.67 sen, compared to earnings per share of 4.18 sen in the year before.

In its filing with Bursa Malaysia, the company attributed the loss to impairment on the purchase consideration from PT Anglo Slavic Utama and the advance made to PT ASI totalling US$27 million (RM84.6 million).

“We are being pro-active in managing the impact of the PT ASI matter on Protasco, and are making a full provision of RM84.6 million.

“With the matter now in court, any future impact on Protasco will be isolated and will not affect performance and ongoing operations,” said Datuk Sri Ir Chong Ket Pen, executive vice chairman and group managing director of Protasco.

Due to the large quarterly losses, Protasco made a net loss of RM42.4 million for the nine months to Sept 30, compared to net profit of RM32.8 million, despite its revenue climbing 15% to RM667.7 million from RM581.7 million.

Going forward, Protasco remains positive of its overall performance in 2014, as it expects growth from its maintenance, construction and property development segments.

“The PPA1M (Perumahan Penjawat Awam 1Malaysia) project, with total value of almost RM600 million, have started to contribute its revenue and profits in the current quarter and this will continue for the next two years as the project progresses,” said the group.

Moreover, Protasco expects its property development segment to double its contributions in the coming quarters as it has commenced development of Phase 2A, together with the ongoing Phase 1 of PPA1M.

Protasco had earlier filed a legal suit against Tey, Ooi and PT Anglo Slavia Uta to claim back US$22.2 million (RM73 million) it had paid in its foiled attempt to buy a 63% stake in oil and gas outfit PT ASI.

Tomorrow Prostasco would hold an EGM to seek shareholder approval to remove two directors, Tey Por Yee and Ooi Kock Aun, both of whom are also substantial shareholder.

The EGM was convened by two of Protasco's substantial shareholders, UOBM Nominees (Tempatan) Sdn Bhd and Tan Keng Hui who collectively hold a 10.51% stake in the group.

There will be another EGM on Thursday, requested by Tey and Ooi, to oust the maninging director Chong.  

Tey holds a 17.31% equity stake while Chong 21.86% in Protasco

Protasco share price rose seven sen or 4.32% to RM1.69, giving a market capitalisation of RM566.61 million.