SDEB able to service debts due to stable financial position

TheEdge Fri, Jan 18, 2019 12:38am - 5 years View Original


JOHOR BAHRU (Jan 17): Senai-Desaru Expressway Bhd (SDEB) is currently able to repay all its debts as the company's financial position continues to be stable, said chief executive officer Jamal Abd Nasir Taharim.

SDEB, the concession holder of a 77km tolled highway in Johor (E22), was refuting reports that it would go bankrupt as there was a perception that its debt level was so high compared with its revenue that the Government would need to come in and take over its operations.

“Our financial position is still stable. We are able to service debt obligations to all creditors and can cover all expenses for operating and managing the expressway,” Jamal told a media conference after attending an E22 vendor seminar here today.

He said SDEB recorded RM89 million in revenue last year as a result of éncouraging traffic growth supported by the Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang.

“Nonetheless, from the end of December to this year, we have seen a decline (in traffic). This may be due to the near completion of works related to the project so fewer people are using the expressway,” Jamal said.

Therefore, SDEB is expecting revenue of only RM79 million for this year.

“We hope the attractions developed by Khazanah Nasional Bhd in Desaru such as Desaru Coast Adventure Waterpark, Hard Rock Hotel Desaru Coast and The Westin Desaru Coast Resort will be promoted better by the company, as it has yet to make a significant impact (on traffic).

“At the same time, we are promoting Desaru and its surroundings by showcasing the unique local cuisine on the company's Twitter and Instagram accounts. Through this, we hope to attract more Malaysians to visit the area and improve traffic flow,” he added.

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