KUMPULAN Powernet Bhd (KPower) posted a 760% jump in its net profit for the first quarter ended Sept 30, 2020 to RM57.06 mil from RM948,000 in the same period a year ago.
The company’s revenue for the period under review climbed 411% to RM57.06 mil from RM11.16 mil.
The company’s construction related activities segment is its largest revenue contributor with RM52.81 mil or a 1,137% jump from the corresponding period of the previous year. The surge in this segment’s revenue was due to additional works on current construction projects and preliminary works on new construction projects in Laos and Nepal.
In line with the momentum of the global and domestic economic recovery, KPower continues to record strong earnings throughout the period, underpinned by its construction-related activities in the energy, utilities and infrastructure segment.
“We remain upbeat on the group’s prospects in view of the resilient outlook for energy sector,” commented group managing director, Mustakim Mat Nun.
“We are optimistic that governments across the region will continue to focus on the energy, utilities and infrastructure industries as they are key industries in revitalising and expanding the economy.”
The ASEAN region recently increased its renewable energy’s installed capacity target to 35% by 2025. This target is set under the ASEAN Plan of Action for Energy Cooperation Phase 2 which will be implemented during the period of 2021 until 2025.
“This and the recent signing of Regional Comprehensive Economic Partnership trade agreement shows the region is serious in expanding and growing its economy,” noted Mustakim.
“Having established our operation regionally, KPower is naturally excited and well-positioned to partake in this development. This will definitely augur well for our growth and expansion plan.”
KPower plans to further expand its geographical presence in the energy sector within ASEAN and South Asia.
It also intends to expand its capabilities in other renewable energy spectrum such as large-scale solar projects and widening its product offerings to include hybrid wind/solar energy projects targeting the Europe, Middle East and Central Asia markets.
To date, the group has secured a sizeable RM1.4 bil order book in Malaysia, ASEAN countries and Nepal. It targets to further increase its order book size by an additional RM2 bil by its financial year ending June 30, 2021.
At 12.30pm, KPower was up 1 sen or 0.2% to RM4.89 with 772,000 shares traded, thus valuing the company at RM387 mil. – Nov 30, 2020
