Kinergy Advancement posted lower net earnings for Q3, tender pipeline standing at RM3.3b

KUALA LUMPUR: Kinergy Advancement Bhd’s (KAB) net profit for the third quarter (Q3) ended September 30, 2024 (FY24) slide

70.0% to RM6.10 million from RM20.35 million posted in the same quarter last year.

Revenue for the quarter increased 67.6% to RM81.51 million from RM48.62 million posted in Q3 FY23, driven by higher contributions from the sustainable energy solutions (SES) segment.

For the nine months (9M) of FY24, KAB’s revenue rose 21.2% to RM165.37 million, compared to RM136.46 million for the same period last year. This reflects resilient core operations during a capital-intensive growth phase.

The group’s growth remains robust, driven by the SES segment, which delivered RM86.3 million in revenue, over three times the RM25.8 million recorded in the same period last year. This was fuelled by contributions from new projects and recent acquisitions.

Deputy chairman and group managing director Datuk Lai Keng Onn said the growth across the SES segment continues to perform as planned.

“We remain focused on achieving our targeted milestones, supported by steady project execution and enhanced gross profit, underscoring our strategic direction,“ he said.

KAB’s extensive order book and project pipeline provide a strong platform for future growth.

The group currently holds an order book valued at RM850 million, with RM120 million in engineering projects and RM730 million in SES projects.

Its active tender pipeline has grown to an impressive RM3.3 billion, indicating significant potential and opportunities in sustainable energy and engineering projects on the horizon.

The group has reaffirmed Malaysia’s rising demand for sustainable energy solutions for the current quarter, showcasing its robust performance.

“KAB’s proven track record in executing complex projects within set timelines showcases our expertise in operational excellence, instilling confidence in the company’s extensive capability to deliver value to clients and shareholders consistently,” Lai said.

As the group advances with larger-scale projects in its SES segment, including solar, biogas, and hydropower projects across Asean, KAB’s robust expertise in project management approach, innovation, ESG and sustainability strengthens its position as a leading force in Malaysia’s sustainable energy transition.

This track record further demonstrates KAB’s dedication to building sustainable infrastructure that aligns with national decarbonisation targets and broader global ESG standards.