SINGAPORE (Nov 9): Nordic Group announced that 3Q17 earnings increased by 23% to $4.4 million compared to $3.6 million in 3Q16.
Revenue for the quarter increased by 25% to $26.8 million from $21.4 million last year, mainly due to increase in revenue from the maintenance services segment contributed by Ensure which was acquired in April 2017.
The group’s maintenance service segment saw an 83% increase in revenue to $10.4 million from $5.70 million last year.
Meanwhile, revenue from the project services segment was up by 4% to $16.4 million from $15.7 million a year ago.
Similarly, cost of sales increased 21% to $17.7 million from $14.7 million a year ago.
Hence, gross profit came up to $9.07 million, 35% more than $6.73 million recorded in 3Q16, while gross profit margin increased to 34% from 31% in the previous year.
Interest income increased 95% to $51,000 from $26,000 last year.
Finance costs increased more than double to $0.46 million from $0.22 million the previous year, due to higher interest expenses from increase in interest rates and more borrowings from the acquisition of Ensure.
Administrative expenses increased 17% to $3.25 million from $2.78 million last year, due to higher administrative expenses contributed by Ensure.
In 3Q17, the group recorded other losses of $0.28 million compared to other gains of $0.49 million a year ago, arising mainly from foreign exchange losses due to the weakening of USD against SGD.
As at Sept 30, the group has recorded outstanding orders amounting to about $99.4 million.
On the outlook, the group remains positive over the long-term prospects in the marine, offshore oil and gas industries, petrochemical sectors, pharmaceutical and infrastructure industries.
Shares in Nordic closed at 58 cents on Thursday.
