Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 24): KNM Group Bhd slipped into the red in its fourth quarter ended Dec 31, 2016 (4QFY16), posting a net loss of RM330.38 million or 15.49 sen loss per share against a net profit of RM6.01 million or 0.32 sen per share a year ago, mainly due to losses in its Canada and Kuantan operations, foreign exchange losses and unforeseen logistic costs.

Quarterly revenue fell 10% to RM411.07 million in 4QFY16 from RM457.43 million in 4QFY15.

The weak fourth-quarter results dragged KNM's financial reports for the full-year (FY16) down; it posted a net loss of RM311.68 million or 14.61 sen loss per share — its first annual loss since FY11 — against a net profit of RM49.53 million or 2.65 sen per share in FY15. Revenue came in slightly higher at RM1.65 billion, from RM1.64 billion in the previous year.

In a filing with Bursa Malaysia today, KNM said its Asia and Oceanic, and Americas segments posted gross losses in FY16. Only its Europe segment saw higher gross profit, but pre-tax earnings were lower due to higher operating costs.

"The prolonged uncertainties in the oil and gas industry for the past two years had resulted in lower capital expenditure spending by our customers. Nevertheless, the stabilising of crude oil prices since January 2017 has offered some relief to the industry.

"The board anticipates the outlook for FY17 will remain challenging. The group will continue its strategy to diversify its sources of income from project-based contracts by building long-term sustainable recurring revenue from the energy business," added the group.

KNM shares fell 1 sen or 2.74% to close at 35.5 sen today, giving it a market capitalisation of RM757.14 million.

 

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