KUALA LUMPUR: Pekat Group Bhd's net profit fell 2.2 per cent to RM4.4 million in the first quarter (Q1) ended March 31, 2022, from RM4.5 million a year ago due to higher staff-related expenses.
The company's revenue rose 9.2 per cent to RM45.49 million in Q1 2022 from RM41.66 million last year due to higher revenue from the trading segment.
"The transition to Covid-19 endemic phase has allowed industries to operate at full capacity and without restrictions.
"As such, there were more orders from the trading segment being fulfilled and delivered to customers than in Q1 2021," it said in a filing to Bursa Malaysia today.
On prospects, the company said that with the increase in the national renewable energy adoption target, Pekat Group expects a sizable renewable energy quota to be offered by the Energy Commission of Malaysia in the years to come.
This will include new large scale solar (LSS) project tenders and additional net energy metering (NEM) quotas in which the company will participate accordingly.
"The recent win of a RM38.3 million engineering, procurement, construction, and commissioning (EPCC) contract for a project at Batang Padang, Perak, will provide a necessary reference to the company for the LSS project's execution and completion.
"It will also benefit the company in its future LSS project tenders," it said.
Since the end of the previous quarter, the company had secured new contracts with a combined value of RM61.3 million, of which RM50.2 million is from the solar photovoltaic (PV) segment, and RM11.1 million is from the earthing & lightning solutions (E&LP) segment.
Pekat Group said the new contracts secured bring the company's outstanding order book to RM209.0 million and contribute positively to its revenue for the financial years to come.
The board of directors expects challenging market conditions arising from increasing raw material prices and foreign currency fluctuations.
"However, the company is well-positioned to grow its order book and improve its operational efficiency, it added.