Friday, October 1, 2010

SILK turns around in earnings

KUALA LUMPUR: Silk Holdings Bhd's (SILK) net profit more than doubled to RM11.5 million for 4QFY10 ended July 31 from RM4.69 million a year ago. The profit was boosted by a 'negative goodwill of reverse takeover' of RM11.87 million at the pre-tax level.

Earnings per share shot up to 3.02 sen from 2.6 sen previously. Quarterly revenue came in at RM59.6 million versus RM45 million a year earlier.

The oil and gas (O&G) division contributed RM43.6 million or 73% of the group's revenue while the balance came from the highway division, which is still loss making.

The O&G division posted a pre-tax profit of RM5.78 million, while the highway division incurred a pre-tax loss of RM4.56 million.

In a statement, SILK said its O&G support services division continued to remain market competitive. The division has'' managed to secure two new medium- to long-term charters during FY10.

'The newly acquired O&G support services division made a major contribution to the group's overall financial performance,' said its chairman Datuk Mohd Azlan Hashim.

He said the division's profit helped to nullify the losses in the highway concession.

'The impact that the O&G division has had on overall performance is clear testament to the decision taken by the board of directors and shareholders to acquire AQL Aman Sdn Bhd,' Azlan said in the statement.

For FY10, the company posted a net profit of RM19.25 million, marginally lower than the RM20.8 million in the preceding year.

Revenue was at RM223.9 million versus RM206.7 million previously.


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