Wednesday June 27, 2012
PBA counts on RM21.3bil investments committed since 2010
By DAVID TAN
GEORGE TOWN: PBA Holdings Bhd expects its revenue to grow and margins to sustain over the next two years despite the global economic challenges.
Chairman Lim Guan Eng told a press conference that this was because there were RM21.3bil worth of investments committed since 2010 that would materialise gradually in the next two years.
“In 2010, we roped in RM12.2bil worth of investments from local and foreign companies. In 2011, we managed to draw another RM9.1bil.
“These funds are now gradually being used for building plants that would consume water on a commercial scale. Thus we can expect our revenue to grow and margins to sustain over the next two years,” he said.
For the first quarter ended March 31, PBA posted RM10mil in pre-tax profit on the back of RM61mil revenue, compared with RM13.2mil and RM56mil respectively in the previous year.
On its water treatment business in China, Lim said the unit, Yichun Pinang Water Co Ltd, (YPWC) had increased its supply of treated water by 200% from 10 million litres per day (MLD) to 30 MLD in Jiangxi province.
“This development generated a 34% revenue growth for YPWC, from RM2.3mil in 2010 to RM3.1mil in 2011. The supply volume is projected to increase further to 40 MLD in 2013 and 50 MLD in 2014.
“Yichun City is developing a new airport, industrial park and commercial business centre and we will continue to serve as their partner in water supply engineering,” he said.
Lim said there were no plans to provide similar water treatment services to other neighbouring countries, as PBA wanted to focus on its core activity of supplying clean drinking water.
Meanwhile, chief executive officer Jaseni Maidinsa said the group had recently closed its water bottling business after operating for three years since 2009.
He said the decision was made by PBA board last month as a result of losses incurred by the wholly-owned unit, Island Springwater Sdn Bhd.