KNM Group's Q2 net profit shrinks on lower revenue, higher tax expense

PETALING JAYA: KNM Group Bhd’s net profit slumped 92.6% to RM502,000 for the second quarter ended June 30, 2017 against RM6.79 million in the previous corresponding period, due to lower revenue and higher tax expense. Revenue fell 14.7% from RM427.98 million to RM364.87 million.
For the first half of the year, KNM’s net profit plunged 86% from RM17.58 million to RM2.46 million, on the back of a 16.2% drop in revenue from RM825.06 million to RM691.65 million, mainly due to lower project percentage of completion recognised as the projects related to the Pengerang Integrated Petroleum Complex are delivered or near completion as well as slower replenishment of new orders due to market uncertainties.
The board anticipates the outlook for financial year ending Dec 31, 2017 will remain challenging.
KNM closed 4.17% lower at 23 sen with 8.86 million shares traded.