Kim Heng has reported higher revenue of $44.3 million for its 1HFY2023, up 26.4% over the year-earlier period ended June, with its various businesses all generating more sales.
Notably, revenue from its renewable energy segment surged from $0.3 million in 1HFY2022 to $7.2 million in 1HFY2023, thanks to a new offshore windfarm project that has commenced.
However, costs increased too. Coupled with lower gain recognised, the company is reporting earnings of $1.7 million, down 66% y-o-y from $5.1 million.
In his earnings commentary, executive chairman and CEO Thomas Tan says Kim Heng remains well positioned to extend its strategic footprint into the renewables offshore market. The company is exploring new markets in Asia besides Taiwan.
Tan also notes that demand for vessels chartering will remain strong and with the company's recent acquisition of vessels, announced on Feb 24, will enable Kim Heng to capitalise revenue growth in chartering segment as well as revenue derived from modification of reactivated vessels for on-selling.
Kim Heng shares closed at 9.9 cents on Aug 8, down 1%.
