KUALA LUMPUR (May 24): Frontken Corp Bhd posted a net profit of RM5.02 million in the first quarter ended March 31, 2017 versus a net loss of RM1.24 million a year earlier as the mechanical-engineering services provider's revenue rose on growth in the semiconductor sector.

In a statement to Bursa Malaysia, Frontken said revenue climbed to RM67.06 million from RM58.79 million. Frontken's clients include those in the oil and gas, power generation and marine industries.

"Against the same period last year, the profit before tax increased by approximately RM7.4 million (395.1%) as a result of improved revenue and lower operating expenses.

"The group’s revenue for the current quarter ended 31 March 2017 increased by approximately RM8.3 million (14.1%) compared to the preceding year corresponding period. The group’s subsidiary in Taiwan and Singapore achieved an improved business performance largely due to the positive growth of the semiconductor business in the current quarter," Frontken said.

Looking ahead, Frontken said it expected a challenging business environment this year due to uncertainties in China, Europe and the US.

Frontken said it was mindful of "the future trade policy of the US as well as the economic performance of Europe and China."