SILK Holdings Bhd expects traffic flow on its Kajang SILK Highway to experience a double-digit growth in the next few years.
SILK Holdings chairman Datuk Mohd Azlan Hashim said: "For the time being, we are counting a loss in our highway infrastructure division, but we see it reducing organically as the traffic flow into the highway increases.
"This division experienced a loss reduction from RM26 million last year, to RM19 million this year," he told reporters after the company's annual general meeting today.
The concession operated by Sistem Lingkaran Lebuhraya Kajang Sdn Bhd recorded a total traffic volume of 45.4 million vehicles from January to December 2010, a 17 per cent increase over the total traffic volume of 38.8 million recorded the previous year.
"In the first nine months of this year, there has been a further marked increase in traffic performance with the average daily traffic volume in excess of 140,000 vehicles daily," Mohd Azlan said.
Meanwhile, the group's oil and gas support services division continues to be the biggest contributor to revenue.
Mohd Azlan said the division recorded an improved revenue of RM182.69 million for the year ended July 31, 2011 from the RM181.32 million recorded in the previous corresponding year.
"This represents a marginal improvement of 0.76 per cent over the previous recorded performance," he added.
He said during the financial year ended July 31, 2011 the division managed to secure six new long-term charters and had three existing ones renewed.
Mohd Azlan said the company currently owned 14 vessels and plans to purchase two more next year.
"The addition of the new vessels to the fleet and the company's established track record provides the division with the ability to remain competitive.
"The division is expected to continue to contribute positively to the group in the current financial year," he added. --Bernama
SILK Holdings chairman Datuk Mohd Azlan Hashim said: "For the time being, we are counting a loss in our highway infrastructure division, but we see it reducing organically as the traffic flow into the highway increases.
"This division experienced a loss reduction from RM26 million last year, to RM19 million this year," he told reporters after the company's annual general meeting today.
The concession operated by Sistem Lingkaran Lebuhraya Kajang Sdn Bhd recorded a total traffic volume of 45.4 million vehicles from January to December 2010, a 17 per cent increase over the total traffic volume of 38.8 million recorded the previous year.
"In the first nine months of this year, there has been a further marked increase in traffic performance with the average daily traffic volume in excess of 140,000 vehicles daily," Mohd Azlan said.
Meanwhile, the group's oil and gas support services division continues to be the biggest contributor to revenue.
Mohd Azlan said the division recorded an improved revenue of RM182.69 million for the year ended July 31, 2011 from the RM181.32 million recorded in the previous corresponding year.
"This represents a marginal improvement of 0.76 per cent over the previous recorded performance," he added.
He said during the financial year ended July 31, 2011 the division managed to secure six new long-term charters and had three existing ones renewed.
Mohd Azlan said the company currently owned 14 vessels and plans to purchase two more next year.
"The addition of the new vessels to the fleet and the company's established track record provides the division with the ability to remain competitive.
"The division is expected to continue to contribute positively to the group in the current financial year," he added. --Bernama
