PETALING JAYA: Wah Seong Corp Bhd reported a 30.9% decline in net profit to RM20.2 million for the first quarter ended March 31, 2019 against RM29.25 million recorded in the same quarter a year ago.
Its revenue also slipped 13.8% to RM683.76 million from RM792.83 million.
The group attributed the drop in earnings to the weakness in its oil & gas and industrial trading & services segment, which saw profits before tax down 25.8% and 93.5% to RM24.2 million and RM400,000 from RM32.6 million and RM6.2 million, respectively.
However, its renewable energy segment’s profit before tax jumped 85.4% to RM7.6 million from RM4.1 million.
Wah Seong’s current order book amounts to RM1.1 billion, comprising RM702.4 million in oil & gas, RM330.2 million in renewable energy and RM53.1 million in industrial trading & services sector.
The group said there has been an increase in tender preparatory activities among some oil & gas majors for a number of prospective projects.
“These are expected to be converted into firm bids in the near term, with awards taking place in the next six to 18 months. The outlook for the group is likely to improve in the course of the year.”
Source: The Sun Daily