SUBANG JAYA: Transport and logistics provider NCB Holdings Bhd will address the issue of escalating costs with a more efficient financial management system to turn around its haulage and logistics operation subsidiary Kontena Nasional Bhd.
Kontena Nasional incurred a loss of RM19.2mil in the last financial year ended Dec 31, mainly due to the lower margin contribution from new logistics activities caused by high initial start-up costs.
“The board of Kontena Nasional is addressing this issue at present.
“We want to strengthen the financial management system to stabilise cost so that we can obtain improved margins.
“We hope to see better results in the coming quarters,” NCB chairman Tun Ahmad Sarji Abdul Hamid told reporters after the company's AGM.
One of the core focuses of Kontena Nasional, according to Ahmad Sarji, would be operational cost management and bottom-line results.
Nevertheless, Ahmad Sarji said the company's port operations, viaNorthport (M) Bhd, continued to be the main profit contributor.
In the last financial year, NCB posted a pre-tax profit of RM180.4mil, reflecting a marginal decrease of 5.1% over 2011.
This came on the back of an RM987.2mil revenue, a 6.4% increase against the previous year.
Northport's profit contribution was RM197.3mil.
Northport handled 3.1 million twenty-foot equivalent units (TEUs) last year, a decrease of 3.4% over the previous year.
Ahmad Sarji said the completion of container terminal four in August should boost the port's capacity and business.
On capital expenditure, Ahmad Sarji said the company had earmarked RM1bil for 2013 and utlised about RM700mil year-to-date, adding that future expansions might be financed via the issuance of sukuk.
He was also thankful to the Government for renewing the Northport lease by extending its present tenure by another 30 years to 2043 and another 21 years for Southpoint to 2034.
“The terms and conditions of this new lease are being negotiated and finalised, and slated for completion in the third quarter of this year,” he said. NCB paid out a dividend of 65.5 sen per share, involving a total payout of RM308mil, last year.