KUALA LUMPUR (Nov 21): Kinergy Advancement Bhd (KAB)’s net profit jumped 19-fold to RM20.36 million for the third quarter ended Sept 30, 2023 (3QFY2023) — its highest quarterly profit since listing in 2017 — against RM1.05 million in the previous year’s corresponding quarter.

Boosted by the strong sustainable energy solutions (SES) business, operating profit also increased more than 90-fold to RM21.32 million from RM219,000 while revenue more than tripled to RM12.88 million from RM3.63 million, due to higher tariffs, contributions from new projects and a gain from the acquisition of a mini-hydropower plant PT Inpola Mitra Elektrindo.

Formerly known as Kejuruteraan Asastera Bhd, the group’s filing showed that revenue for the quarter increased slightly to RM48.62 million from RM48.3 million in 3QFY2022.

For the cumulative nine months ended Sept 30, KAB’s net profit surged more than 11-fold to RM26.14 million from RM2.28 million a year earlier.

Nine-month revenue, meanwhile, decreased by 5.18% to RM136.46 million from RM143.92 million due to the temporary effects of strategically repositioning KAB's contract portfolio with a greater focus on SES.

Moving forward, KAB said it is actively expanding its client base in the energy landscape as it pushes forward with its penetration into Asean markets, offering high growth potential, mainly attributed to its provision of value-adding sustainable solutions to businesses, showcasing its capability in delivering energy operational optimisation.

Year-to-date, the group has successfully added three significant assets into its portfolio, namely solar, mini-hydro and biogas plants that will provide the group with sustainable earnings in the future, said executive deputy chairman cum managing director Datuk Lai Keng Onn.

“Our specialist capability has been recognised including by Petronas, which awarded us two engineering, procurement, construction, and commissioning (EPCC) contracts this year alone.

“On Nov 6, 2023, Petronas appointed us to provide RM33.3 million in EPCC for utility expansion and energy infrastructure enhancement of LNG carriers transformation to floating storage units at Pengerang,” said Lai in a separate statement.

“This award strengthens our position within the sustainable energy space and our reputational capabilities as a one-stop energy and engineering solutions provider delivering competent standard services and solutions to clients. We hope to replicate our success with more job wins in the sustainable energy space in the future,” he added.

As at end September, KAB’s total order book stood at RM911 million, comprising RM751 million for SES and RM160 million for the mechanical and electrical engineering segment.

KAB’s share price was up 1.5 sen or 4.62% at 34 sen at the time of writing on Tuesday, giving the group a market capitalisation of RM651.32 million.