T7 Global's earnings plunge in Q4 on higher cost of sales, lower other income

PETALING JAYA: T7 Global Bhd saw its net profit plunge by 98.16% in the fourth quarter ended December 31, 2017 to RM166,000 from RM9.04 million a year ago on higher cost of sales, lower other income and higher taxation.
This was despite revenue for the quarter under review almost tripling to RM102.74 million from the RM37.28 million reported in the fourth quarter of 2016 on contribution from its engineered packaged segment growing more than 700% and its products and services segment chipping in 36% more to sales.
Its board of directors said that despite the challenges in the oil and gas industry, the group will continue to focus in the sector while also looking for other new ventures for potential growth.
For the full year, its net profit more than halved to RM1.88 million for the financial year ended December 31 2017 from RM4.30 million for the financial year ended December 31, 2016.
Revenue for the period however grew to RM204.49 million from RM83.27 million, mainly due to the contributions from the Origins and construction work request contracts from Petronas.
As at end of morning trade the stock fell half a sen to 62.5 sen with some 37.12 million shares changing hands.