KKB Engineering’s 3Q net profit triples

Business & Markets 2013
Written by Esther Lee of theedgemalaysia.com
Friday, 01 November 2013 10:06
A + A - Reset
KUALA LUMPUR: KKB Engineering Bhd’s net profit for the third quarter ended
Sept 30 (3QFY13) tripled to RM7.14 million, or 2.77 sen per share, from
RM1.76 million, or 0.68 sen per share, a year ago.
The company’s revenue for the same quarter gained nearly 36% to RM56.89
million from RM41.86 million previously.
In a filing with Bursa Malaysia, KKB attributed the surge in net profit to its better
performing engineering sector which recorded higher revenue, coupled with
improved margin contributions.
On a cumulative nine-month basis, the company’s revenue increased 41.3% to
RM181.26 million from RM128.24 million in the corresponding period last year.
Its nine-month net profit more than doubled to RM30.49 million from RM13.18
million a year ago.
Profit after tax (PAT) for the engineering division expanded to RM20.21 million
from a mere RM3.12 million the year before. Meanwhile, its manufacturing
division’s PAT went up marginally by 3.7% to RM11.37 million from RM10.96
million a year ago.
KKB said it would continue to focus its effort on the expansion of its operating
facilities. The company is currently actively searching for new opportunities to
extend its operations, preferably into steel structural fabrication activities for the
oil and gas sector.
“Going forward, the group is continuously exploring viable strategic
collaborations and new business opportunities to enhance its existing portfolio,”
it said.
It also said the offshore facilities construction-major onshore fabrication licence granted by Petroliam Nasional Bhd to its associate
company, OceanMight Sdn Bhd, will allow KKB to participate directly in the upstream fabrication works for the oil and gas sector.