KUALA LUMPUR: Sustainable energy and engineering solutions specialist Kinergy Advancement Bhd (KAB) posted a revenue of RM199.41 million for the financial year ended December 31, 2023 (FY23), marking a 6.6 per cent increase from the previous year.
The revenue growth was mainly due to the KAB’s strategic shift towards the sustainable energy segment (SES), which experienced a more than fivefold increase from the previous year.
KAB’s net profit stood at RM28.88 million, showcasing a growth of more than tenfold from the RM2.78 million reported in FY22.
The surge in the net earnings was mainly driven by an impressive 862.6 per cent growth in its SES segment results to RM36.10 million and further boosted by the substantiated gain from the completion of PT Inpola Mitra Elektrindo, a mini-hydropower plant in Indonesia in the third quarter (Q3) of FY23.
Executive deputy chairman and group managing director Datuk Lai Keng Onn said the positive financial performance in FY23 is a testament to KAB’s resilience and strategic pivot towards sustainable energy solutions.
“The remarkable performance in our SES segment, coupled with our continuous growth potential, underlines the significance of sustainable energy in meeting the escalating demand for cleaner energy today.
“It also reaffirms our expertise in delivering solutions that can shape and contribute to a greener planet and greater positive environmental impact,” he said in a statement.
For the fourth quarter (Q4) FY23, KAB’s revenue rose by 35.1 per cent to RM62.95 million, up from RM46.61 million in the same quarter last year.
A significant highlight from this quarter’s earnings was the SES segment, surpassing the engineering segment to become KAB’s leading revenue generator, contributing 56.97 per cent to the total revenue.
This was mainly due to contributions from new projects and new entities acquired for the SES segment.
In line with the strong growth, KAB’s net profit surged by 399.1 per cent to RM2.65 million in Q4 FY23 as compared to RM0.53 million recorded in Q4 FY22.
The significant improvement was mainly due to more lucrative tariffs and contributions from new projects.
“KAB’s strategy in shifting our focus from engineering works in construction and property projects to higher-margin sustainable energy solutions has yielded a bountiful harvest throughout 2023.
“Along with our record earnings, we are also on track to meeting our operational objectives and ESG, sustainability targets,” Lai said.
He said KAB is also cautiously optimistic about its outlook going forward, led by the SES segment.
The surge of earnings in KAB’s SES segment during FY23 reflects a robust demand for green, clean and renewable energy and the company’s successful integration of profitable projects and new entities in the SES segment.
“Our outstanding performance in FY23 solidifies our role as a holistic energy and engineering solutions provider.
“It’s gratifying to witness the success of our transformational journey, transitioning from an engineering to an Energy-focused entity.
“The shift has proven rewarding, particularly with our expansion into the SES segment,” said Lai.
He said FY23 had demonstrated the success of KAB’s strategic diversification into the SES segment, showcasing the significant potential for meeting future energy needs and facilitating energy transition.
“Again, I strongly believe that the exceptional performance in FY23 reaffirms our position as a leading energy and engineering solutions provider,” he said.
