By DayakDaily Team
KUCHING, Feb 25: KKB Engineering Bhd (KKB) recorded a remarkable 194 per cent surge in net profit for the fourth quarter of 2024 (4Q24), reaching RM10.61 million compared to RM3.61 million in the same quarter last year (4Q23).
At the same time, revenue for 4Q24 increased by 40 per cent to RM231.58 million compared to RM166.06 million in 4Q23.
For the full financial year 2024 (FY24) ended December 2024, KKB reported a 35 per cent rise in revenue to RM634.26 million, up from RM470.98 million in FY23. However, net profit saw a slight dip of 1.7 per cent to RM26.2 million from RM26.6 million previously.
In a filing to Bursa Malaysia yesterday (Feb 24), KKB attributed the higher revenue to increased recognition from its steel fabrication business and stronger progress billings from its civil construction division.
The company noted that revenue growth in its civil construction division was largely driven by higher progress claims from the Pan Borneo Highway project (Work Package 09), in line with its ongoing completion milestones.
Additionally, its newly secured water-related construction project—particularly the proposed Serian Regional Water Supply Phase Two—contributed RM8.5 million in 4Q24. However, KKB highlighted that this project is still in its early stages and has yet to make a significant impact on overall revenue and earnings.
Meanwhile, revenue from KKB’s manufacturing division declined to RM4.4 million in 4Q24 from RM8.1 million in 4Q23 due to lower activity in its steel pipe and liquefied petroleum gas (LPG) cylinder manufacturing segments.
The company also noted that an order secured in December 2024 from Gamuda Bhd for the supply of MSCL pipes and specials in Sabah is still in its initial phase and has yet to contribute to the group’s financial performance.
Looking ahead, KKB said it remains actively engaged in securing new infrastructure projects, particularly in water supply and construction, to strengthen its order book across its engineering and manufacturing divisions.
“Generally, the group is guided by the Sarawak’s Post Covid-19 Development Strategy (PCDS) 2030 and also the PETRONAS Activity Outlook. Our strategic focus remains on infrastructure development in Sarawak and Sabah, the Sarawak Water Supply Grid Programme, specialised engineering and construction activities for major onshore oil and gas fabrication, and renewable energy initiatives in Sarawak,” the company stated.
With its existing contracts, diversified business portfolio, and strong financial position, KKB’s management and board remain optimistic about the group’s performance for the financial year ending 2025.
KKB’s board of directors has recommended a first and final single-tier dividend of 7.5 sen per share for FY24, subject to shareholder approval at the company’s upcoming Annual General Meeting (AGM).
The entitlement and payment dates for the dividend will be announced in a separate filing to Bursa Malaysia at a later date. — DayakDaily
