This article first appeared in The Edge Financial Daily, on February 25, 2016.

KUALA LUMPUR: Protasco Bhd’s Federal Road Maintenance (FRM) concession, which expires this month, has been extended for 10 years, according to sources.

Sources told The Edge Financial Daily that the FRM concession, covering 7,000km of roads in Terengganu, Kelantan, Selangor and Pahang, is expected to contribute a recurring income of up to RM250 million annually for the next 10 years.

“The routine maintenance work will contribute a recurring income of RM130 million a year, while the periodic maintenance and emergency works will bring in additional RM100 million to RM120 million every year, depending on the actual work being carried out,” a source familiar with the concession said.

It is learnt that the concession renewal has been given to Roadcare (M) Sdn Bhd, the maintenance unit of Protasco. The concession is slated to expire in February 2026.

Meanwhile, sources said Protasco is also likely to receive a contract extension to undertake routine and periodic maintenance works for the state roads in Terengganu for the next seven years.

Previously, Permint Granite-HCM Sdn Bhd, another unit of Protasco, had been awarded a seven-year contract worth RM188 million, which will be expiring in July this year.

Yesterday, Protasco announced a net profit of RM20.2 million for the fourth quarter of financial year 2015 (FY15) ended Dec 31, 2015, compared to a net loss of RM4.07 million a year ago, mainly driven by its construction segment.

Quarterly revenue inched up 15.7% to RM455.89 million from RM393.91 million, with improvements marked by contributions from it maintenance, construction and property development segments.

For the full FY15, net profit stood at RM66.24 million, compared to a net loss of RM46.44 million a year before. Revenue, meanwhile, was 21.7% higher at RM1.29 billion from RM1.06 billion in FY14.

Protasco expects to maintain its performance despite signs of economic weakness globally, and the challenges expected for the construction and property development industries.

“We expect to see the construction division continue to contribute positively to the bottom line with the award of Phase 2 of [the] Perumahan Penjawat Awam 1Malaysia project,” executive vice-chairman and group managing director Datuk Seri Chong Ket Pen said in a separate statement.