This article first appeared in The Edge Financial Daily on November 22, 2019

KUALA LUMPUR: Wah Seong Corp Bhd’s net profit for the third quarter ended Sept 30, 2019 (3QFY19) fell 38% to RM15.29 million or 1.98 sen per share, from RM24.49 million or 3.17 sen per share a year earlier, on lower revenue from its business units.

In a Bursa Malaysia filing yesterday, the integrated energy infrastructure group said revenue dropped 8% year-on-year to RM644.49 million, mainly attributed to a 20% drop in revenue from its oil and gas (O&G) segment.

It said there were lower level of activities in the O&G segment following the completion of coating activities on a major project that has been ongoing since late 2016.

The nine-month net profit fell as a result, down 27% to RM54.73 million from RM74.77 million previously, as revenue fell 7.5% to RM2.09 billion.

Looking ahead, the group said in the context of an improved O&G sector outlook, it will continue to bid for new projects.

The group’s current order book of RM969.4 million comprises RM570.8 million in O&G, RM352.1 million in the renewable energy segment, and RM46.5 million in the industrial trading and services sector.

Wah Seong’s share price closed three sen or 2.36% lower at RM1.24 yesterday, with a market capitalisation of RM955.37 million.