SINGAPORE (May 9): Nordic Group, the petrochemical engineering company serving the offshore oil and gas industry, reported 22% higher earnings of $3.4 million for the 1Q18 ended March from a year ago.
Nordic’s revenue grew 14% to $22.7 million mainly attributed to higher revenue contribution from the group’s maintenance services business segment, following the acquisition of Ensure Engineering on April 28.
Revenue from maintenance services business segment rose 71% to $9.3 million in 1Q18 from $5.5 million in 1Q17. Revenue from project services remained stable, increasing by 2% to $13.4 million in 1Q18 from $13.1 million in 1Q17.
Revenue from the others segment in 1Q18 was nil as there was no sale of carbon allowances compared to 1Q2017. Gross profit increased by 12% to $6.8 million from $6.1 million while gross profit margin remained strong at around 30%.
Administrative expenses increased to $2.9 million in 1Q18 from $2.0 million in 1Q17 as a result of additional operating costs incurred by Ensure.
As at March 31, Nordic’s outstanding order book stood at $99.3 million including maintenance contracts. From Jan 1 to May 3, Nordic clinched a total value of $33.6 million worth of contracts.
Chang Yeh Hong, Executive Chairman of Nordic, says, “We will continue to prospect for other earnings accretive M&A opportunities to grow our income streams. We remain positive over our long-term prospects across all sectors and delivering value and returns to our shareholders.”
Shares in Nordic closed 0.5 cent lower at 53 cents on Wednesday.
