Kelington delivers record high revenue, net profit in 3Q22
KUALA LUMPUR: Kelington Group Bhd (Kelington) reported a sterling set of financial results in the third quarter (3Q22) and nine months ended September 30, 2022 (9M22).
In a press statement, it said, Kelington registered an all-time record high quarterly revenue of RM366.4 million in 3Q22, an increase of 244.5 per cent from RM106.4 million in the preceding year’s corresponding quarter (3Q21). Net profit rose 97.3 per cent to RM15.7 million as compared to RM8.0 million previously.
Gross profit margin during the quarter however was lower at 11.1 per cent versus 19.2 per cent in 3Q21 due to the change in revenue mix driven by higher contribution from the general contracting segment.
In terms of business segment, the Ultra High Purity (UHP) division remained as the primary revenue contributor, representing 56 per cent of total revenue to the Group in 3Q22. This was followed by the general contracting segment which contributed 33 per cent and process engineering segment at four per cent.
The industrial gases division continued its upward performance in 3Q22 with higher production output as the group successfully penetrated a new geographical region namely Oceania countries for the sale of liquid carbon dioxide (LCO2). As a result, revenue increased almost three-fold to RM20.5 million, as compared to RM7.5 million in 3Q21. This represented six per cent of the Group’s total revenue. For the cumulative nine month period, revenue and net profit in 9M22 soared to a new record high of RM852.1 million and RM37.6 million respectively. Revenue from the Malaysia operations recorded the highest growth, and rose 239.0 per cent to RM399.1 million, on the back of higher contribution from UHP division and general contracting segment.
Commenting on the group’s financial performance, chief executive officer Raymond Gan said, “We are delighted to have sustained the strong growth momentum in 3Q22 with yet another record-breaking quarter.
“Furthermore, our net profit of RM37.6 million in 9M22 has outperformed our full year net profit in FY2021 of RM29 million. Moving forward, we remain confident of achieving a commendable financial performance as we have our hands full in carrying out our orderbook.
“As at September 30, 2022, we have clinched new contracts amounting to RM1.4 billion. Including the projects carried forward from the previous year, our total orderbook stands at RM2.4 billion, of which RM1.6 billion remains outstanding. In addition to that, we recently secured another two contracts totaling approximately RM262 million from Malaysia and China in early November 2022.”
The group’s prospects in the industrial gases division remain positive as demand for LCO2 increase in tandem with the recovery in economic activities.
With the existing LCO2 manufacturing plant having reached a capacity utilisation of 80 per cent, the group is investing RM45 million to set up the second LCO2 plant to capture future opportunities. Expected to commence operations in FY24, this new plant will more than double Kelington’s existing LCO2 manufacturing capacity and strengthen the group’s market presence in this industry.