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Nordic Group Q3 profit down 12% to S$2.9m

PRECISION engineering and systems integration solutions provider, Nordic Group, on Monday night posted a 12 per cent fall in third-quarter net profit to S$2.9 million, from S$3.3 million a year ago. 

This translated to earnings per share of 0.7 Singapore cent for the three months ended Sept 30, versus an earnings per share of 0.8 Singapore cent in the preceding year.

Revenue slipped 2 per cent to S$20.9 million, while gross profit was down 19 per cent to S$4.6 million. 

Looking ahead, Nordic Group noted that the operating environment and business conditions of the marine, oil and gas industries which it serve remain challenging. 

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In addition, fluctuations in the exchange rate of the US dollar against the Singapore dollar, and the trade war between the US and China may affect the group's business. 

"Our group expects growth to be muted and full recovery to be slowed," the company said. 

However, Nordic Group is optimistic with its secured contract wins to date, largely from the onshore and downstream oil and gas sectors, its cost and risk management initiatives, the credit worthiness of its growing clientele base, and further opportunities for earnings-accreitve mergers and acquisitions, the group noted. 

Shares in Nordic Group closed at 27.5 Singapore cents on Monday, up 3.8 per cent, or one cent, before its results announcement.