KUALA LUMPUR: Kelington Group Bhd's net profit doubled to RM16.19 million for the first quarter (Q1) ended Match 31, 2023 (FY23) from RM8.3 million posted a year ago.
The integrated engineering solutions provider's revenue surged 78.2 per cent to RM308.93 million from RM173.33 million previously.
Kelington attributed the top and bottom-line performance growth to significant double-digit revenue contribution growth across all operating markets.
As a result, Kelington's earnings per share grew to 2.52 sen from 1.29 sen a year ago.
Chief executive officer Raymond Gan said Kelington had achieved impressive results across various business divisions, establishing a solid foundation for the year.
"Moving forward, we maintain a positive outlook and have complete confidence in executing and fulfilling our commitments.
"It is worth noting that the company is experiencing a healthy rate of orderbook replenishment across all segments," he said in a statement today.
Looking ahead, Kelington said the growth prospects of the industrial gases segment continue to be promising, driven by the increasing demand for liquid carbon dioxide (LCO2) in line with the recovery of economic activities.
The company noted that the proposed investment in the second LCO2 plant at Kerteh would lead to a production capacity that is more than double the current level.
"This expansion is expected to have a substantial positive impact on the financial performance of the industrial gas division, with the anticipated effects to be realised from the financial year 2024 (FY24) onwards.
"Currently, the utilisation rate of the LCO2 plant currently stands at 91 per cent," it said.
Kelington's order flows remain buoyant as the company has thus far secured RM467 million worth of contracts as of March 31, 2023.
Inclusive of the carried forward projects from prior years, Kelington's total orderbook now stands at RM2.2 billion, of which RM1.8 billion remains outstanding as of March 31, 2023.
The elevated orderbook is expected to further bolster Kelington's financial performance in FY23.
Kelington's gearing ratio on its balance sheet stood at 0.76 times as of March 31, 2023.
The company's total borrowings decreased to RM200 million from RM245 million as of December 31, 2022, mainly due to the repayment of borrowings in Malaysia.
Notwithstanding, Kelington's balance sheet remains healthy, with a net cash position of RM13.5 million as of March 31, 2023.