Friday 29 Mar 2024
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KUALA LUMPUR (Aug 7): KKB Engineering Bhd posted its fourth straight quarter of profit in the second financial quarter ended June 30, 2018 (2QFY18), with a net profit of RM1.76 million compared with a net loss of RM7.2 million a year ago.

In a filing with Bursa Malaysia today, KKB attributed the improved performance to higher revenue recognition from both the engineering and manufacturing sectors, in particular from the civil construction, steel fabrication and steel pipe manufacturing divisions.

This resulted in the group posting an earnings per share of 0.68 sen in 2QFY18 compared with a loss per share of 2.79 sen in 2QFY17.

Quarterly revenue almost doubled to RM93.19 million from RM46.87 million in 2QFY17.

For the cumulative six months (1HFY18), KKB recorded a net profit of RM3.11 million compared with a net loss of RM8.68 million in 1HFY17, while revenue grew 75.7% to RM157.75 million from RM89.80 million a year ago.

On prospects, KKB said with its diversified activities and supported by a healthy financial position, the group is well placed to maintain sustained performance and will continue to focus on its core businesses and exercise its continuous effort on prudent cost management and operational efficiency to stay competitive.

"Riding on the current improved crude oil prices, coupled with the existing contracts in hand and the on-going construction works for the development and upgrading of the proposed Pan Borneo Highway in the Sarawak (Phase 1 Works Package Contract – WPC-09), the group’s performance for 3QFY18 is expected to remain satisfactory," it added.

KKB said however, it is cautious that the continued uncertainties in the global economic environment, escalation of costs due to inflationary pressure, volatility of global raw material steel prices and fluctuation of exchange rates are among factors that may impact the group’s performance.

KKB shares closed up 4.5 sen or 5.11% at 92.5 sen today, with a market capitalisation of RM235.88 million.

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