KUALA LUMPUR: Coastal Contracts Bhd
’s net profit for the third quarter ended March 31, 2023 (3Q FY2023) jumped to RM153.66 million compared to RM44.32 million in the same quarter last year due to higher profit contribution from its joint venture in Mexico.
Revenue increased to RM55.74 million in 3Q FY2023 from RM53.84 million previously.
In a filing with Bursa Malaysia today, Coastal Contracts said that the higher profit from its gas processing division in 3Q FY2023 was due to the higher profit contributed by the Papan Plant joint venture in Mexico.
"The better showing this quarter was mainly due to higher interest income earned from loans granted to a joint venture and greater profit share from joint ventures,” it said.
On prospects, the company said the demand trend for natural gas is expected to increase mainly due to the development of industries and growth in electricity demand using natural gas as the power generation source.
"Recently, Coastal Group diversified its earnings portfolio in Mexico by venturing into gas-sweetening processing plant projects.
"With the Jack-up Gas Compression Service Unit (JUGCSU) charter contract secured by the group, which is currently in operation, the group is able to effectively leverage its competitive advantage and a strong foothold in this sector with promising prospects,” it said. - Bernama
