KUALA LUMPUR: Kelington Group Bhd's net profit jumped 40 per cent to RM26.7 million in the second quarter of financial year 2024 (2QFY24) from RM19 million last year.
However, its revenue fell 24 per cent to RM321 million frim RM424.9 million a year ago.
This was due to several major projects in Singapore and Malaysia moving out of their accelerated phases and nearing completion.
The integrated engineering solutions provider proposed a dividend of 2.0 sen for the FY24, totaling RM13.6 million that will be paid on Oct 10.
Culmulatively, the company posted a net profit of RM51.5 million while the revenue stood at RM660 million in the first half of financial year 2024 (1HFY24).
In terms of business segments, the ultra high purity (UHP) division remained the primary revenue contributor, accounting for RM427.6 million or 65 per cent of Kelington's total revenue in 1HFY24.
Meanwhile, the processing engineering division and general contracting division contributed RM38.8 million and RM128.2 million respectively, which made up 6 per cent and 19 per cent of the total revenue.
The industrial gases division maintained its strong performance in 1HFY24, with revenue rising 33 per cent to RM71.3 million, driven by elevated demand for liquid carbon dioxide from Oceania countries and increased sales of other gases.
Kelington's balance sheet remains strong with a cash balance of RM334.1 million exceeding total debt of RM197.7 million as of June 30, 2024.
Chief executive officer Raymond Gan remain confident in the company's growth trajectory, driven by robust project pipeline and its active involvement in regional tenders.
"Kelington is well-positioned for sustained growth, supported by key developments. In the first half of 2024, the group secured new contracts totaling RM564 million, bringing the total outstanding order book to RM1.29 billion," he added.