Kelington sees 30% drop in 3Q profit

PETALING JAYA: Kelington Group Bhd (KGB) saw a 30% year-on-year (y-o-y) drop in its net profit, in line with the decline in revenue, for the third quarter ended Sept 30, 2024 (3Q24) due to several major projects nearing completion that led to slower revenue contributions.

For 3Q24, KGB’s revenue slid by nearly 25% y-o-y to RM307.3mil and net profit also posted 30% lower y-o-y to RM22.9mil, translating to an earnings per share of 4.83 sen.

For the nine months ended Sept 30, 2024, KGB registered a 6% y-o-y increase to RM75.6mil. Revenue on the other hand for the same period tumbled by 15% y-o-y to RM967.8mil. The group attributed the lower turnover to reduced revenue contributions from Singapore and Malaysia, as several major projects in these regions transitioned out of their accelerated phases and approached completion.

Additionally, KGB stated there is a timing gap between the completion of existing projects and the commencement of new projects.

Going forward, the company said it is confident to deliver a “commendable” financial performance in financial year 2024, underpinned by the execution of its existing order book across key markets and the continued momentum in its industrial gas business.