KKB poised to recover in FY2023, says chairman

KUALA LUMPUR (April 19): KKB Engineering Bhd is poised to recover with its full-fledged integrated capabilities in the financial year 2023.

In its annual report for 2022, chairman Datuk Seri Kho Kak Beng said the engineering sector is expected to turn a new page with the completion of projects secured pre-pandemic and the replenishment of its order book.

He said that with its stable foundation, the company possesses the financial strength and resilience to embrace multiple opportunities in the future while reducing reliance on its traditional engineering and construction activities.

“While we expect the operating environment to remain volatile in the year ahead, we remain resilient and resolute to stay on course.

“We continue to seek opportunities to drive our business forward with our diversified range of businesses by leveraging on our strong track record and capabilities that we have built over the years to return to a higher level of growth and sustainability,” said Kho in the annual report.

However, downside risk remains due to ongoing supply chain disruptions, inflationary pressures, the threat of new Covid variants and climate change, he said.

The group continues to upgrade its yard facilities and consolidate its resources by focusing on its core businesses, controlling its operating costs and managing the business risks to stay competitive.

KKB’s strong prospects are underpinned by a robust outstanding order book of RM314 million as of Dec 31, 2022, he added.

“I am pleased to share that the group has secured a contract for the provision of engineering, procurement and construction (EPC) of standard wellhead platforms for Malaysian liquefied natural gas (MLNG) FaS (F27, F22 and Selasih) gas field development project from Sarawak Shell Bhd at the beginning of 2023.

“This is a significant step towards raising our order book for major steel fabrication jobs for the oil and gas facilities.

“Beyond 2022, we remain focused on strengthening and boosting the value of our existing operations. The group continues to explore and evaluate strategic business opportunities, including but not limited to strategic investment, partnerships or acquisitions,” he said.

The board of directors has proposed a first and final single-tier dividend of six sen per share for FY2022, subject to approval by shareholders at the forthcoming annual general meeting. The proposed dividend, if approved, would amount to approximately RM17.3 million.