KUALA LUMPUR: Kelington Group Berhad, an integrated engineering solutions provider, announced outstanding financial results for the first quarter ending 31 March 2024 (1Q24).
The Group’s net profit surged by 53.3%, reaching RM24.8 million, up from RM16.2 million in the previous year (1Q23). Additionally, revenue increased by 10% to RM339.3 million, compared to RM308.9 million in 1Q23. This growth was primarily driven by substantial revenue increases in key markets, particularly Malaysia (+6%) and China (+129%), which contributed 45% and 31% of the total revenue in 1Q24, respectively.
The Ultra High Purity (UHP) division remained the largest revenue contributor, accounting for 61% of the Group’s total revenue in 1Q24. The UHP division’s revenue grew by 12% to RM205.5 million, fueled by several major UHP projects awarded in the second half of 2023. The Process Engineering division generated RM21.4 million, representing 6% of the Group’s total revenue for 1Q24.
The General Contracting division saw a 21% year-on-year (YoY) increase in revenue, totaling RM78.4 million, driven by increased project recognitions and a significant project in Kuching. The Industrial Gases division also performed strongly, with revenue rising by 47% YoY to RM35.9 million, largely due to heightened demand for liquid carbon dioxide (LCO2) from Oceania countries.
Commenting on the financial performance, Ir. Raymond Gan, Chief Executive Officer of Kelington Group Bhd, stated, “We are pleased with the commendable results across our business divisions, which lay a solid foundation for the year. Our order book continues to replenish at a steady pace.”
“Since the beginning of the year, we have secured contracts worth RM235 million as of 31 March 2024. Including carried forward projects, our total order book stands at RM1.54 billion, with RM1.25 billion still outstanding as of 31 March 2024.”
“The start of operations at our second LCO2 plant in March 2024 has doubled our annual production capacity to 120,000 tonnes. This expanded capacity strategically positions us to meet the growing demand both locally and internationally, especially given the global LCO2 shortage driven by the shutdown of petrochemical plants due to environmental concerns,” he added.
As of 31 March 2024, the Group’s gearing ratio improved to 0.44. Total borrowings decreased to RM166.6 million from RM188.2 million as of 31 December 2023, primarily due to debt repayments in Malaysia and Singapore. Kelington maintains a robust balance sheet with a net cash position of RM135.5 million as of 31 March 2024, significantly up from RM81 million as of 31 December 2023, largely due to debt repayments and proceeds from nearing the completion of several large projects.
The Board of Directors of Kelington has proposed a first interim tax-exempt dividend of 2 sen per ordinary share for the financial year ending 31 December 2024, amounting to RM13.3 million.
