Kim Heng 5G2 % issued a profit guidance announcing that it expects net profit for FY2022 ended Dec 31, 2022, to be positive, compared to FY2021.
To recap, the group recorded a loss of $5.9 million in FY2021, although revenue was 68% higher y-o-y at $63.2 million.
The group’s expected positive net profit for FY2022 was mainly attributable to operating profit and increase in other income contributed by gain on disposal of vessels.
The group is able to achieve such positive net profit due to stronger demand for marine and offshore services; its prudent acquisition of vessels during the economic downturn and able to leverage on knowledge from oil & gas operations to repurpose the existing fleet of vessels by retrofitting, modifying and reconstructing at its two shipyards to meet customers’ requirements.
Repurposing of existing fleet for sale is in the ordinary course of business for the group. The group is strengthening its offshore capabilities by repositioning to actively pursue more opportunities in offshore windfarm projects in Taiwan, Vietnam and United States of America.
The group is still in the process of finalising its financial results for FY2022. Further details of its financial performance will be disclosed when it announces its unaudited financial results for FY2022 on or before Feb 28.
See also: TDCX reports 1QFY2023 profit of US$20.5 mil, 22.5% higher y-o-y
Shares in Kim Heng closed 6.9% higher on Feb 21 at 9.3 cents.