PLUS Q2 profit up on higher revenue, lower cost

From The Star:

Toll highway operator PLUS Expressways Bhd’s net profit rose 5.7% to RM281.32mil for the second quarter ended June 30 compared with the previous corresponding period on higher toll revenue and lower operating costs.

Its revenue increased 4.6% to RM72.24mil. For the first half, its net profit gained 3.4% to RM559.87mil while revenue was up 3.6% to RM1.51bil.

The company said in a filing with Bursa Malaysia that toll collection was 3.3%, or RM18.6mil, higher than the same quarter last year due to higher contribution from Projek Lebuhraya Utara-Selatan Bhd (PLUS), which operates among others the North-South Expressway.

PLUS’s toll compensation recoverable from the Government increased to RM2.18bil as at June 30 this year from RM1.91bil as at end-December 2008. It said total revenue for the quarter under review was also higher due to higher toll compensation of RM15.4mil.

PLUS managing director Noorizah Abd Hamid said in a statement that despite the economic downturn, traffic volume for all expressways for the first half had shown good growth.

She said from January to June, PLUS achieved traffic growth of 4.6%, Elite 3.5%, Linkedua 9% and Konsortium Lebuhraya Butterworth-Kulim 0.3% compared with the same period last year.

Cost-reduction initiatives would “continue to be a primary focus for the group” and would encompass all efforts to manage costs and enhance process efficiencies, including prioritising expenditures and embarking on various cost reduction initiatives, she added.

Things seem to be looking good for toll operators. Revenues seem unaffected by the recession. Volume for traffic for the north-south highway showed plenty of growth. This indicates that most parts of the country are seeing the effects of recovery.