KUALA LUMPUR (Nov 23): Sarawak-based marine engineering and infrastructure specialist Hock Seng Lee Bhd (HSL) reported a 32% year-on-year decline in its net profit for the third financial quarter ended Sept 30, 2017 (3QFY17) to RM11.06 million from RM16.34 million, as its construction segment reported lower revenue and profit margin.

Its quarterly revenue dropped 7% y-o-y to RM126.33 million from RM136.03 million, due to timing of progress claims for construction works as major contract works are at their initial stages of execution, its Bursa Malaysia filing yesterday showed.

For the first nine months of FY17 (9MFY17), HSL's net profit fell 29% y-o-y to RM31.86 million from RM44.68 million, while revenue declined 12% to RM337.9 million from RM385.34 million.

In a statement, HSL said it had RM2.7 billion worth of works unbilled as at Sept 30, having added some RM586 million in new projects over the 9MFY17 period. This, it said, gives it half a billion ringgit more in outstanding revenue compared to the end of the first nine months of 2016.

It completed RM287 million worth of projects in the first nine months of 2017.

Among its ongoing mega projects are a section of the Pan-Borneo Highway and Package 2 of Kuching's Centralised Wastewater Management System; while among the significant new contracts it secured this year are a wastewater project in Miri, a collector road in Samalaju, and the building of some educational institutions in Miri and Mukah.

Further, it announced on Tuesday it had won a RM56.6 million, 19-month contract for piling and building works for X-Fab, the world's leading foundry group for analog/mixed-signal semiconductor applications.

HSL managing director Datuk Paul Yu Chee Hoe said the group has had a good quarter in terms of procurement and productivity. Also notable this quarter is the strong contribution from its property development sector, which has some RM287 million worth of projects ongoing.

Group net profit before tax for the current quarter reached RM15.11 million, up 18% from RM12.78 million in 2QFY17.

"Looking ahead, the 18% rise in revenue and earnings between the second and third quarters is a pleasing trajectory and we expect this trend to continue into the final fourth quarter of 2017," said Yu.