KUALA LUMPUR: Engineering services company Frontken Corporation Bhd
posted a stronger set of financial results for the year ended Dec 31, 2018 underpinned by better global semiconductor business and improvement in oil and gas business in Malaysia and Singapore.
It announced on Tuesday its net profit rose by 75% to RM52.25mil from RM29.85mil in FY17 while its revenue increased by 10.3% to RM327.22mil from RM296.58mil.
Frontken said the higher revenue was mainly due to better performances from the group’s subsidiaries in
Singapore, Malaysia and Taiwan.
“Year-to-date revenue from our subsidiaries in Singapore, Malaysia and Taiwan rose 17.1%, 14.9% and 8.6% respectively compared to the preceding year corresponding period,” it said, attributing it to the stronger performance of the global semiconductor industry.
Its profit before tax increased by 63.9% to RM75.61mil from RM46.14mil a year ago due to higher revenue, better cost management and a small gain on disposal of an associate.
Frontken said in the fourth quarter, its net profit rose by a strong 90% to RM18.68mil from RM9.83mil a year ago. Its revenue increased by 10% to RM88.66mil from RM80.37mil. Its earnings per share were 1.78 sen compared with 0.94 sen. It proposed an interim dividend of 0.8 sen a share.
It cited the US-based Semiconductor Industry Association's (SIA) announcement that global semiconductor industry posted sales of US$114.7bil in the fourth quarter of 2018, an increase of 0.6% versus a year ago.
It said due to the positive growth of the semiconductor business and improvement in oil and gas business in Malaysia and Singapore, its subsidiaries' business performance increased by 40.6% and 25.2% from a year ago.
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