KNM slips into the red with RM601.48 million net loss for FY21

KNM slips into the red with RM601.48 million net loss for FY21

KUALA LUMPUR (Feb 25): KNM Group Bhd slipped into the red with a net loss of RM601.48 million for financial year 2021 (FY21) ended Dec 31, 2021 compared with a net profit of RM64.2 million posted a year ago.

Revenue decreased to RM1.02 billion from RM1.35 billion previously, it said in a filing with Bursa Malaysia.

KNM said the lower revenue was attributed to the dip in production output recorded by the fabrication plants in Asia and Europe regions, as a result of stringent pandemic protocols and slow new orders secured during FY21 due to the worldwide Covid-19 pandemic.

It said the Asia and Oceania segment posted a lower revenue of RM72.72 million in FY21 against RM240.53 million for FY20, due to the restricted production in fabrication division in Malaysia following the Movement Control Order compliance in FY21, coupled with slow replenishment of new orders caused by the prolonged health pandemic and no contributions from Thai operations.

Additionally, the Europe segment posted a lower revenue recognition of RM949.97 million for FY21 from RM1.11 billion in the preceding year due to lower new orders secured in FY21 caused by the prolonged health pandemic.

For the fourth quarter ended Dec 31, 2021, KNM incurred a net loss of RM577.52 million compared with a net profit of RM14.74 million previously, while revenue fell to RM219.1 million from RM360.54 million.

On prospects, the company anticipates the outlook for FY22 to remain challenging due to the continuous uncertainties in the global economic outlook due to impacts of Covid-19 pandemic and geopolitical conflicts in Europe.

"The underlying industries that drive our business prospect such as oil and gas, petrochemical and energy will remain challenging as recovery of the disruption from the Covid-19 pandemic is largely dependent on the roll-out speed of vaccination to majority of the population, stability of the crude oil price, and the resurgence of Covid-19 pandemic," it said.

http://www.theedgemarkets.com/article/knm-slips-red-rm60148-million-net-loss-fy21