KUALA LUMPUR: KNM Group Bhd pulled into the red as it posted a net loss of RM32.51mil for the third quarter of its financial year ending Dec 31, 2021, on the back of revenue of RM326.38mil.
For the nine months period to Sept 30, 2021, the group posted a net loss of RM23.96mil compared to a net profit of RM49.46mil in the previous corresponding period.
Loss per share for the cumulative three quarters came to 0.76 sen compared to earnings of 1.86 sen per share in 9MFY20.
The group reported revenue in 9MFY21 slipped 18.9% year-on-year (y-o-y) to RM803.6mil on lower contributions from its market segments.
Year-to-date, the group’s Asia and Oceania segment was negatively impacted, with revenue falling to RM52.60mil from RM151.57mil in the year-ago period.
“This was due to lower production output caused by the restricted production capacity in fabrication division in Malaysia as a result of the MCO compliance in the current financial period, coupled with slow replenishment of orders caused by the prolonged health pandemic and no contribution from Thailand’s operations,” it said in a filing with Bursa Malaysia.
The Europe segment also saw revenue slump to RM750.99mil from RM839.34mil in the same period a year earlier due to lower orders resulting from the prolonged health pandemic.
On outlook, the board expects the remainder of the year to remain challenging due to the ongoing uncertainties in the global economy arising from the Covid-19 pandemic.
“The underlying industries that drive our business prospect such as oil and gas, petrochemical and energy will remain challenging as recovery of the disruption from the Covid-19 pandemic is largely depending on the roll-out speed of vaccination to majority of the population, stability of the crude oil price and the resurgence of Covid-19 pandemic particularly in Asia,” it said.
It added that the global economy will show improvement towards end-2021 with higher vaccination rates and easing of lockdowns, particularly in major economies including the US, Europe and China.