By ANIS HAZIM / pic by TMR FILE
KNM Group Bhd posted a net loss of RM32.5 million in the third quarter ended Sept 30, 2021 (3Q21), (versus a net profit of RM17.98 million in 3Q20) due to unrealised exchange loss and higher finance costs for certain construction projects.
Revenue for the quarter was RM326.4 million as the company managed to make higher deliveries of process equipment projects in the quarter from its Europe segment.
For the cumulative nine months (9M21), KNM posted a net loss of RM23.96 million versus a net profit of RM49.46 million in 9M20, while revenue fell to RM803.59 million from RM990.91 million in 9M20.
“This is mainly due to lower production output achieved in Malaysia as a result of the restricted production capacity caused by the Movement Control Order and slow replenishment of orders caused by the Covid-19 pandemic worldwide,” KNM stated in its exchange filing yesterday.
The company stated that the outlook for the financial year ending Dec 31, 2021 (FY21), remains challenging due to the continuous uncertainties.
“The underlying industries that drive our business prospects such as oil and gas, petrochemical and energy will remain challenging as the recovery of the disruption from the Covid-19 pandemic is largely depending on the roll-out speed of vaccination, stability of the crude oil price and the resurgence of Covid-19 pandemic particularly in Asia,” KNM stated.
Separately, KNM announced the redesignation of its non-executive chairman Tan Sri Dr Zulhasnan Rafique, who is also a former federal territories minister, as executive chairman for the group.
On Monday, KNM proposed a private placement of 10% of its share capital to raise up to RM53.46 million, five months after its private placement of 30% share capital was rejected by shareholders in June.
The private placement is aimed to pare its debt of RM30 million and working capital of RM22.16 million.
Last Thursday, the group missed the principal and coupon payments on bonds worth RM352.57 million as it encountered challenges due to the Covid-19 pandemic and unfavourable conditions at its Thai’s subsidiary, Impress Ethanol Co Ltd.
KNM has a grace period until Dec 2 to pay the principal sum and Dec 9 to pay the coupon before the event of default occurs.
KNM’s shares closed unchanged at 17 sen yesterday, giving it a market capitalisation of RM551.62 million.