Malaysia’s Kinergy Advancement Berhad Records 19-Fold Surge In Quarterly Profit, Fueled By Sustainable Energy Segment’s 254.8% Revenue Jump

Kinergy Advancement Berhad (KAB), a leading One-Stop Energy and Engineering Solutions Provider, has reported its strongest-ever quarterly Profit After Tax (PAT) for the third quarter ending 30 September 2023 (3Q23). The remarkable financial performance was propelled by the success of its sustainable energy solutions (SES) business, contributing to a nearly 19-fold increase in PAT to RM20.32 million compared to RM1.07 million in the same quarter last year.

The SES segment played a pivotal role, recording revenue of RM12.88 million, a substantial 254.8% increase from RM3.63 million in 3Q22. The segment results skyrocketed by 9,636.5% to approximately RM21.32 million in 3Q23 from RM0.22 million in the previous year, highlighting the remarkable growth trajectory. The recent completion of the acquisition of PT Inpola Mitra Elektrindo, a mini-hydropower plant, contributed to the gain, boosting the Group’s overall financial performance.

Dato’ Lai Keng Onn, Executive Deputy Chairman cum Group Managing Director of KAB, commented on the strategic shift, stating, “The management’s strategy in shifting our focus from mechanical and electrical engineering works to higher-margin sustainable energy solutions have started to bear fruit.” The SES segment’s increased contribution is reflected in its share of total revenue, growing from 7.5% to 26.5% in 3Q23.

The stellar results in 3Q23 positioned KAB’s PAT for the first nine months ending 30 September 2023 (9M23) at a slight over 11-fold year-on-year increase to RM26.23 million from RM2.30 million in the previous corresponding period. Despite a temporary dip in overall revenue due to strategic repositioning, SES contributed about 19% of the Group’s total revenue in 9M23 compared to just 8.2% in 9M22.

Supported by an order book of RM911 million as of 30 September 2023, with RM751 million for SES and RM160 million for M&E segments, KAB is well-positioned for continued growth. The company is actively expanding its client base in the energy landscape, focusing on the ASEAN markets, and aims to achieve its best financial performance since the pre-pandemic year 2019.

Following recent acquisitions, including Future Biomass Gasification Sdn Bhd, a biogas plant in Kedah, Malaysia, KAB continues to add sustainable assets to its portfolio. The Group’s success has been recognized by PETRONAS, awarding two engineering, procurement, construction, and commissioning (EPCC) contracts in 2023. KAB aims to replicate its success and further expand its footprint in the sustainable energy space.