KKB returns to black in 1Q with RM1.35m profit

KKB Engineering Bhd returned to black in the first quarter ended Mar 31, 2018 (1Q18) with RM1.35 million net profit recorded against RM1.48 million net loss achieved a year ago after recognising gain on remeasurement of investment in former associate, OceanMight Sdn Bhd amounting to RM1.9 million.

Revenue for the quarter rose 50.42% year-on-year (YoY) to RM64.56 million due to the improvement in revenue of the group’s Steel Pipes and LPG cylinders manufacturing divisions and civil construction.

In an exchange filing yesterday, KKB Engineering noted it contract awarded in March 2018 from Petronas Carigali Sdn Bhd for the Provision of Engineering, Procurement, Construction, Installation and Commissioning of Wellhead Platforms for D28 Phase 1 project is still at the preliminary stage to have any significant contribution to the group’s earnings.

Barring any unforeseen circumstances, the company anticipates its performance for 2018 will remain satisfactory with the on-going construction works for the development and upgrading of the Proposed Pan Borneo Highway in the State of Sarawak (Phase 1 Works Package Contract – WPC-09), coupled with its existing contracts in hand.