HSL pre-tax profit rises to RM121.15m for 2012

HOCK SENG LEE'S PRE-TAX PROFIT RISES TO RM121.15 MLN, ANNOUNCES HIGHEST DIVIDEND

Hock Seng Lee Bhd's (HSL) pre-tax profit for the financial year ended December 31, 2012 rose to RM121.15 million from RM116.6 million in 2011, prompting the company's board to propose the highest dividendpaid since its listing.

The profit was achieved on the back of a higher revenue of RM603.27 million for the year from RM581.52 million previously.

Meanwhile its pre-tax profit for the last quarter of the year declined to RM34.62 million from RM34.96 million in the same quarter of 2011.

Revenue for the quarter rose to RM160.11 million from RM158.59 million the previous corresponding quarter.

HSL attributed the ongoing profitability to technical ability, experienced management and a strategic focus on projects drawing on its marine and civil engineering skills.

Its chairman, Datuk Haji Idris Buang said in a statement that the
Sarawak-based infrastructure specialist's board has proposed the
highest ever dividend payout since its listing in 1996.

"The board has recommended a final ordinary dividend of ten per cent and given the pleasing results, a special dividend of three per cent, pending shareholders approvals at the upcoming annual general meeting.

"Added to the interim dividend of seven per cent paid in October 2012, the cash dividend for 2012 would total a record 20 per cent," he said.

Idris said this represented an increase from 2011's total cash dividend payout of 18 per cent and 2010's 15 per cent return, adding that all dividends are franked with a 25 per cent tax credit.

The company currently has some thirty projects in hand worth over RM1.95 billion, with RM1.05 billion outstanding.

Looking ahead, Idris said 2013 began with contract wins, auguring well for another busy year.

HSL has completed 13 projects in 2012 worth RM414 million and has a net cash position of about RM200 million as at Dec 31, 2012 with no gearing, a position which makes it easy to offer clients financing packages.-- Bernama