SINGAPORE (May 11): Nordic Group, the marine, vessel and offshore oil & gas engineering specialist, saw a 21% rise in earnings to $2.8 million from $2.3 million a year ago.
Group revenue increased 1% to $19.9 million. The project services segment contributed $13 million or 65.3% to total revenue. Maintenance services revenue increased 17.4% to $5.5 million. Other revenue of $1.4 million came mainly from the sale of carbon emission allowances.
1Q17 gross profit remained steady at $6.1 million while gross profit margin stood at 30.6%.
Administration expenses fell 29% to $1.9 million mainly on lower staff costs. Interest expense and marketing and distribution expenses also fell 30% and 29% respectively.
Nordic says it is cautiously optimistic about its ability to maintain profitability despite the ongoing softness in the market.
The group’s outstanding order book stands at $20.9 million excluding maintenance contracts. They are expected to be delivered within the next 24 months.
The group also announced in a separate filing that subsidiaries, Austin Energy (Asia) and Multiheight Scaffolding have recently won several contracts with a total value of $38.9 million.
The contracts are secured with repeat and new customers – comprising multinational companies and companies in the marine, oil & gas and petrochemical industries.
Shares of Nordic closed 1 cent higher at 37 cents.
