SILKHLD ... Jan10

SILK HOLDINGS' Net Profit for 1QE Oct 2009 rose 60.6% to RM3.5m from RM2.1m same quarter a year ago due to contributions from its oil and gas division.

Revenue increased 54.3% to RM48.8m from RM31.6m while EPS improved to 1.61 sen from 1.22 sen.

SILK said the Group recorded higher revenue and PBT from same quarter a year earlier, mainly due to the commencement of three new vessels subsequent to that period.

The increase from Oil & Gas Division had more than offset the RM1.7m loss attributable to 17 days' negative contribution from the Highway Division said the Company in its EXCHANGE filing on Dec 9, 2009.

PROSPECTS
Going forward, SILK said contributions from the Oil & Gas Division would remain positive as all vessels had been on long-term contracts of one to seven years.

The Company also said that traffic volume on the Kajang-SILK Expressway would continue to grow in the near term, as experienced in the current period under review. However, the Highway Division would continue to record accounting losses, albeit on a declining basis, it said.

" .... The Group is expected to remain Cash Flow positive as a result of additional contributions from the Oil & Gas Division, and the restructuring of the Long-Term Islamic Debt whereby the Company is obliged to pay until Jan 25, 2015 but limited to the available Cash Flow generated from the Kajang-SILK Highway ...." SILK said.