KUALA LUMPUR (May 21): KKB Engineering Bhd’s net profit jumped 135% to RM3.16 million for the first quarter ended March 31, 2019, from RM1.35 million a year ago, due to higher revenue and improved profit margin.

Earnings per share increased to 1.23 sen from 0.52 sen, the group said in a stock exchange filing today.

Revenue for the quarter climbed 82.41% to RM117.76 million, from RM64.56 million in the previous year’s corresponding quarter, mainly due to strong performance in the steel fabrication and civil construction divisions within the engineering sector, KKB said.

“The commencement of work for the Engineering, Procurement, Construction, Installation and Commissioning of Wellhead Platforms for D18 Phase 2 project for Petronas Carigali Sdn Bhd has started to contribute positively to the group’s earnings,” it said.

Meanwhile, the two newly secured projects in February 2019 from the Sarawak Rural Water Supply Department implemented under the Sarawak Water Supply Grid Programme are still at the preliminary stage to have any significant contribution to the group’s revenue and earnings, KKB added.

These are expected to improve the group’s financial performance for the remaining period of 2019, it said.

KKB also expects demand for steel water pipes to remain firm.

Shares in KKB closed down 3 sen or 2.24% at RM1.31 today, leaving the group with a RM337.71 million market capitalisation.