KUALA LUMPUR: KNM Group Bhd posted a net loss of RM32.51 million in the third quarter (Q3) ended September 30, 2021, reversing the RM10.56 million net profit in the last preceding quarter.
In its filing with Bursa Malaysia today, KNM said this was mainly due to the unrealised foreign exchange loss and higher finance costs for certain construction projects of the group that had been expensed off into the income statement in the quarter under review.
The company's revenue rose 1.57 per cent to RM326.38 million against RM321.32 million a year earlier.
This was mainly due to higher deliveries of process equipment projects in the current quarter from the Europe segment.
For the cumulative nine-month period, KNM posted a net loss of RM23.96 million compared with a net profit of RM49.46 million in the same period a year ago.
This was in tandem with an 18.9 per cent drop in revenue to RM803.59 million from RM990.91 million last year.
KNM expects the outlook for the financial year ending December 31, 2021 (FY21) to remain challenging due to the continuous uncertainties in the global economy outlook arising from impacts of Covid-19 pandemic.
The company said the underlying industries that drive its business prospects such as oil and gas, petrochemical and energy would remain challenging.
"This is because the economic recovery is largely dependent on the roll-out speed of vaccination to the majority of the population, stability of the crude oil price and the resurgence of Covid-19 pandemic particularly in Asia.
"We believe that with the various efforts undertaken by the various governments, the global economy will show improvement towards the end of 2021 with higher vaccination rate and easing of lockdowns particularly in major economies including the United States, Europe and China," it added.