Konsortium Logistik eyes 10% revenue contribution from energy & infrastructure unit

by **Cals** Mon 17 Jun 2013, 18:38

Business & Markets 2013

Written by Bernama

Monday, 17 June 2013 18:14

SHAH ALAM (June 17): KONSORTIUM LOGISTIK BHD [] (KLB), an integrated logistics service provider, is eyeing up to 10 per cent revenue contribution from its energy and infrastructure division over the next two years, says Chairman Datuk Abdul Rahman Ahmad.

The division, formerly known as the oil and gas division, contributed RM3 million or one per cent of the group's revenue in 2012.

"We plan to expand this division as oil and gas is the key market with abundant ongoing activities in the country for the next three to five years.

"We are also trying to look at building upstream logistics capability in the oil and gas industry. Later, it would be easier for KLB to move downstream as well," he told reporters after the company's annual general meeting here today.

KLB posted a sharply lower pre-tax profit of RM330,000 for the first quarter ended March 31, 2013, against RM6.078 million registered in the same period last year, due to lower margins.

Revenue rose to RM70.051 million in the quarter, reviewed from RM64.309 million chalked up in the corresponding quarter last year, mostly contributed by the automotive logistics, coal transportation and haulage division.

The company attributed the higher revenue to new businesses in the oil and gas sector following its appointment as a panelist to Petronas Carigali Sdn Bhd in August 2012.

Going forward, Abdul Rahman said the company was poised to achieve better results in the current financial year despite several challenges such as the implementation of the minimum wage policy, reduced fuel subsidy and increasing intense competition.

"Our revenue will grow in 2013 for sure and will exceed 2012's performance amid challenges ahead.

"It (the challenges) would not only be for KLB but for the entire logistics industry. However, we remain bullish on the industry's outlook," he added.