PETALING JAYA: Kumpulan Powernet Bhd (KPower) posted a net profit of RM2.67 million for its third quarter ended March 31, from a net loss of RM698,000 in the previous corresponding quarter.
Revenue skyrocketed to RM31.68 million, from RM425,000 previously mainly driven by its construction related activities, mainly from the preliminary works on the construction projects awarded by Signvest Sdn Bhd, Zhenghong Building Road and Bridge Construction Co, as well as from various other construction projects.
The second largest contributing segment for Q3’20 is the property development sector, which contributed RM5.32 million or 16.8% to total revenue, while the remaining RM128,000 or 0.4% of the company’s total revenue was driven by its manufacturing and others as well as property investment segments.
For the cumulative period, KPower recorded a net profit of RM5.48 million, on the back of RM56.48 million in revenue.
Group managing director Mustakim Mat Nun said despite the challenges posed by the Covid-19 pandemic, they are optimistic about the future of the company.
“We believe we are in the right business (energy, utilities and infrastructure) where the demand is for the long term and it will ride out the short-term economic impacts. Further, the segment that we operate in, which is the green, clean and renewables projects, are expected to grow faster than conventional projects.
“Countries worldwide have since started to introduce and implement their Covid-19 exit strategy to ensure minimal disruption and to kick-start their economy. With this, it is expected infrastructure projects will be given a boost due to its high multiplier effect on the economy,” he said.