Written by Joseph Chin
Thursday, 19 November 2009 19:35
KUALA LUMPUR: Wah Seong Corp Bhd posted net profit of RM31.02 million in the third quarter ended Sept 30, 2009, up 14.7% from RM27.04 million a year ago, as the bottomline was boosted by its specialised pipe coating and corrosion protection services.
Announcing the stronger set of earnings on Thursday, Nov 19, it said revenue slipped 22.3% to RM506.8 million from RM652.22 million. Earnings per share were four sen compared with 3.72 sen.
On the lower revenue, it said the was mainly due to a lower turnover in the engineering and infrastructure and building material businesses and also the impact of the disposal of pipeline contracting business that was completed in the third quarter of 2008.
On the prospects, it said recovery of crude oil price from lows of around US$33 per barrel in December last year to above US$75 per barrel now was positive for the outlook of the oil and gas industry.
Wah Seong expected more energy infrastructure projects to be implemented or reactivated in the near future. This likely improvement, it said, would have a positive impact on the group.
"The industrial services division is expected to perform satisfactorily as it will benefit from the higher economic activities generated from significant government stimulus packages being implemented in the country and in the region," it said.
