KUALA LUMPUR (May 22): KNM Group Bhd's net profit for the first quarter (1Q) ended March 31, 2012 jumped 84.3% to RM35.05 million from RM19.02 million a year earlier, due mainly to to higher job recognition on a stronger order book.
The company said on Tuesday that its revenue for the quarter rose 41.85% to RM585.83 million from RM413 million in 2011.
Earnings per share was 3.58 sen compared to 1.94 sen previously, while net assets per share was RM1.62.
Reviewing its performance, KNM said the higher revenue and improved results for this quarter is mainly due to higher project progress recognition and better contribution margin.
On its prospects, KN said that despite the volatility of commodities in tandem with the euro crisis, oil and gas prices were expected to hover around current level throughout the year providing industry economic sustainability for ongoing and new capital investment which augurs well for its business.
The company said its Asia & Oceanic segment had recorded slightly better order intake coupled with improved contribution margin in 1Q 2012 which was expected to trend positively into remaining quarters.
It said its European segment's new order intake remained robust in the 1Q 2012 which resulted in higher order book than the preceding quarter, adding that current year profitability was expected to continue to ride on strong order book from 2011.
"Our North America operations has gained momentum in new order intake in 1st quarter 2012 which would contribute positively to 2012. Outlook on our Canadian operation is favourable on the back of rising capital investment in the oil and gas sector, whilst our Brazilian operations is undergoing transformation to better position itself in the domestic market.
"Overall, the prospect for the remaining 2012 is expected to remain positive," it said.