PETALING JAYA: KUB Malaysia Bhd posted a net profit of RM4.93 million in the first quarter ended March 31, compared with a net loss of RM69,000 a year ago, helped by its agro segment and a gain on disposal of an office floor amounting to RM900,000.
Its revenue jumped 7% to RM109.38 million from RM102.26 million in the previous year’s same quarter.
The group foresees economic uncertainty, market turbulence and weak consumer sentiment to remain as issues throughout FY20, mainly due to the Covid-19 pandemic and extreme volatility in global crude oil prices.
Against this backdrop, the liquefied petroleum gas division, being the primary revenue and earnings driver of the group, will potentially experience continued demand disruptions and adverse effects from contract price instability in the medium term.
For the agro division, operational and cost optimisation initiatives that have been carried out combined with the reduced drag on earnings following the disposal of the mill, it anticipates an overall improvement in performance going forward.
The group will also constantly seek further sizeable contracts whenever the opportunity arises to enhance our order book for both ICT and power divisions and concurrently accelerate the various operational improvement initiatives across all business divisions.
