The implementation of the RM300mil expansion plan of Northport (M) Bhd, a port- operating subsidiary of NCB Holdings Bhd, will have to depend on the prospects of the lease renewal for the port.
NCB had submitted the lease renewal application to the Government and was hoping for a favourable reply.
The renewal of lease is crucial for NCB as it will determine its prospects.
Northport's 21-year lease agreement will expire in 2013. It has spent more than RM1.5bil on development since its privatisation about 25 years ago.
Nevertheless, NCB did not deny the fact that there could be other contenders eyeing the lease agreement for the port operation as well.
On the RM300mil expansion, Northport needed to expand its capacity due to increased demand and had initiated the development of wharf 8A into container terminal four. The construction is planned to start in the second half of 2011 and expected to be completed in 2013.
This is part of Northport's RM580mil three-year expansion plan that was launched in 2008 but had been postponed due to the global economic downturn.
NCB reported a net profit of RM137.4mil for the financial year ended Dec 31, 2010, down 2.5% from a year ago. Its revenue for the period surged to RM887.9mil from RM831.4mil in 2009. For the year under review, NCB's proposal for a final and special dividend of 30 sen per share less 25% tax was approved at the AGM.
NCB dividend policy complies with Perbadanan Nasional Bhd's of about 75% profits distribution.
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