Hai Leck Holdings announced a net profit after tax of $3.7 million for the three months ended 31 March 2010, up 24% over the $3 million it achieved in the previous corresponding period.

Hai Leck is an integrated service provider of scaffolding, corrosion prevention, thermal insulation, refractory, fireproofing and general civil engineering services mainly for the Oil & Gas and Petrochemical industries.

The group recorded a revenue of $35.9 million, an increase of 31% from $27.3 million it achieved in the previous corresponding period largely due to higher revenue from Project services.

Hai Leck says the group is busy working on several ongoing projects, including maintenance contracts from Shell Eastern Petroleum (Pte) Ltd and Shell Chemicals Seraya (Pte) Ltd to undertake scaffolding, hot and cold insulation and painting works and refractory services at the Pulau Bukom and Jurong Island plants.

The company adds its cash position continues its uptrend with net cash balance of $35.3 million at the end of March 2010, an increase of 95% over the previous corresponding period. Net cash flow generated from operations also increased for the period, standing at $24.2 million against $15 million the previous year.

In line with the gradual turnaround in the global economy, capital expenditure activities in the Oil & Gas sectors, both globally and in the region, are expected to increase.