KNM sees higher profit in Q3

PETALING JAYA: KNM Group Bhd saw its net profit for the third quarter ended September 30, 2017 rise 17.4% to RM1.31 million from RM1.12 million a year ago, thanks to higher gross profit.
However, its revenue declined 15.4% to RM347.52 million from RM410.65 million.
KNM told Bursa Malaysia that it anticipates the outlook for financial year ending December 31, 2017 to remain challenging. However, it noted that the group's strategy to diversify its sources of income from project-based contracts to recurring-income businesses in renewable energy industry is bearing results.
"The bio-ethanol plant in Thailand has been in commercial operations since September 2017 and it will contribute positively to the Group in the following financial years. The phase two of its bio-ethanol plant for additional 300,000 liters per day is currently under construction and is expected to commence commercial operations in the fourth quarter of 2018."
KNM's net profit for the cumulative period of nine months slumped 79.8% to RM3.78 million from RM18.7 million last year due to lower revenue.
Revenue also fell 15.9% to RM1.04 billion from RM1.24 billion, due to low contribution from Asia & Oceania and Americas segments as well lower completion percentage in project progress as projects related to the Pengerang Integrated Petroleum Complex are mostly delivered or nearing completion. This is coupled with slower replenishment of order book due to market uncertainties.
KNM's shares fell 2% to close at 24 sen with 2.41 million shares done.