Stronger marine and industrial segment lifted Pansar net profit up 216 per cent

KUALA LUMPUR: Sarawak-based engineering solutions provider Pansar Bhd (Pansar) registered a net profit of RM2.84 million for the third quarter (Q3) ended 31 December 2019 (FY2020), which is 216 per cent higher than RM0.90 million posted in the same period last year.

Revenue rose from RM88.61 million to RM89.49 million for the same period.

Pansar’s net profit for the nine months (9M) ended 31 December 2019 (FY2020) also saw a 76 per cent increase to RM7.9 million, compared to RM4.5 million recorded last year.

The company registered a revenue of RM259.21 million for the first nine months, as compared to RM283.17 million in the last financial year.

In a filing with Bursa Malaysia, the company attributed its improved Q3 FY2020 performance to its Marine & Industrial segment, which saw an operating profit of RM5.2 million compared with RM3.3 million in the same quarter last year.

The growth was driven by higher marine engine sales, higher purchase incentive as well as a higher write back of allowance for impairment losses on trade receivables in the current period under review.

Pansar also said that the increase of its 9-month cumulative net profit was due to the stronger growth of its Marine & Industrial (M&I) segment, higher gross profit margins and share of profit of associated company as well as other operating income.

“We have observed a pick-up in the marine and oil & gas sector, as seen with shipyard customers coming back to Malaysian ports to build vessels.

“Pansar has increased its efforts in the marine & industrial segment, focusing on shipbuilding and supplying marine engines to customers all over the world such as from Indonesia, the Middle East and Australia,” the company said in a statement.

On the prospects Pansar noted that despite the economy registering its lowest annual growth in a decade in 2019, infrastructure spending is still ongoing and the company’s sales are supported by deliveries of marine engines.

Pansar sees M&I segment continuing to perform well, and will be working closely with shipyards to supply marine engines and gensets to provide electricity to vessels.

“As such, we remain optimistic for the rest of this financial year,” it said.

In May 2019, Pansar’s wholly-owned subsidiary, Pansar Engineering Services Sdn Bhd was awarded the Sibu Flood Mitigation Project Phase 3 that is worth RM78 million by Kiasan Engineering Sdn Bhd.

The project is already ongoing, and it is expected to contribute to the Company’s top and bottom line in FY2020 and FY2021.

Moving forward, the company said it is looking to grow its business both organically and inorganically.

Pansar is also regularly on the lookout for acquisition targets that can help complement its current business and expand its revenue streams.

Source: NST