Nordic Group's Q2 net profit up 17%

PRECISION engineering and systems integration solutions provider Nordic Group posted a net profit of S$4.35 million for its second quarter, up 17 per cent from a year ago.

Revenue went up 8 per cent to S$26.1 million, mainly due to an increase in the sale of carbon allowances.

Earnings per share was 1.1 Singapore cents, up from 0.9 cents previously.

A dividend of 0.779 cents was declared, compared to 0.653 cents a year ago.

The group has outstanding orders amounting to approximately S$96.3 million as at June 30, 2018. Certain maintenance contracts are based on unit rates and do not have a contract value upfront. These contract values are estimated based on historical revenue trends, said the group.

The deliveries for these orders will spread within the next 36 months and the group expects to derive sustained revenue streams from these orders up to FY2021. These confirmed orders are subject to possible cancellation, deferral, rescheduling or variations by customers, the group said.

In its outlook, the group said that its businesses serving largely the marine, oil and gas industries remain challenging.

"Amidst persistent weak oil prices, fluctuations in the exchange rate of the United States dollar against the Singapore dollar and the contagion effect from the fallout of some of the local oil and gas players, the group's growth will be affected," it said.

However, the group is optimistic with the contract wins secured to date, the prudent cost and risk management initiatives undertaken and the opportunities for further M&A.

The group added that it remains positive over the long-term prospects in the marine, offshore oil and gas industries, petrochemical sectors, pharmaceutical and infrastructure industries.