This article first appeared in The Edge Financial Daily on November 14, 2019

KUALA LUMPUR: KKB Engineering Bhd’s net profit grew 2.8 times to RM19.34 million for the third quarter ended Sept 30, 2019 (3QFY19) from RM6.93 million a year ago, on higher revenue from its steel fabrication and construction divisions, coupled with improved margin for its engineering sector.

The group also attributed the higher earnings to better other income, whereby RM6.9 million was recognised following a settlement from an arbitration reached between its wholly-owned unit KKB Builders Sdn Bhd and Global Upline Sdn Bhd.

This resulted in higher earnings per share of 7.5 sen for 3QFY19 compared with 2.69 sen for 3QFY18.

Quarterly revenue was up 47.5% to RM165.48 million, from RM112.18 million for 3QFY18.

The strong quarterly performance lifted the group’s net profit for the cumulative nine months ended Sept 30, 2019 (9MFY19) up by 179% to RM28.05 million from RM10.04 million a year ago, while revenue increased 49.3% to RM403 million from RM269.94 million for 9MFY18.

On prospects, the group expects strong results for the financial year ending Dec 31, 2019 (FY19), supported by existing contracts for ongoing construction works and major onshore fabrication jobs for oil and gas (O&G) facilities.

“The group is continuously pursuing various engineering projects, particularly projects related to the supply, laying and commissioning of water pipes and other related infrastructure works scheduled to be implemented under the Sarawak Water Supply Grid Programme,” said KKB yesterday.