KUALA LUMPUR: Kinergy Advancement Bhd
’s net profit jumped 39.5% to RM9.06mil in the second quarter ended June 30, 2026 (2Q26), from RM6.49mil a year earlier, underpinned by growth in its sustainable energy solutions (SES) segment.
Quarterly revenue rose 11.9% year-on-year (y-o-y) to RM109.38mil from RM97.73mil, while earnings per share improved to 0.41 sen from 0.31 sen previously.
For the first six months of FY26, Kinergy’s net profit grew 29% to RM16.43mil from RM12.74mil, while revenue increased 27.1% to RM211.42mil from RM166.30mil.
Kinergy said growth was mainly driven by its SES segment, where revenue jumped 50.5% y-o-y to RM170.7mil in the first half and accounted for more than 80% of group revenue.
The stronger performance was supported by the execution of specialised energy engineering, procurement, construction and commissioning (EPCC) projects in Sabah and Labuan.
Meanwhile, revenue from its traditional engineering operations stood at RM40.4mil for the six-month period as several mechanical and electrical projects approached the tail end of cost recognition.
The group said the segment’s tender pipeline, however, rose to RM383mil from RM104mil in the preceding quarter.
Kinergy also strengthened its liquidity during the period following the partial monetisation of Jati Cakerawala Sdn Bhd, which redeployed RM41.5mil of renewable energy asset value while allowing the group to retain a 51% controlling stake.
Together with a RM4.1mil dividend from an associate, the exercise helped lift cash and bank balances to RM107.8mil and total liquid assets to RM168.8mil as at end-June.
Total liquid assets were 43.6% higher compared with December 2025, while net gearing improved to 0.25 times from 0.49 times.
Executive deputy chairman and group managing director Datuk Dr Lai Keng Onn said the combination of earnings growth and lower gearing provided Kinergy with greater flexibility to fund its existing projects and pursue new opportunities.
“Halving our gearing while growing PBT by more than 30% gives us genuine flexibility to fund our order book and tender pipeline on our own terms, rather than being constrained by them,” he said in a statement.
As at June 30, Kinergy had a secured order book of about RM1.14bil, comprising RM93mil from engineering and RM1.05bil from SES.
This was supported by an active tender pipeline of RM3.08bil, including RM383mil of engineering opportunities and RM2.70bil under SES. The tender pipeline represents about 2.7 times its existing order book.
Looking ahead, Kinergy said it continued to evaluate larger renewable energy opportunities, including large-scale solar and battery energy storage systems, as well as infrastructure opportunities linked to data centres.
The group said these opportunities would broaden its participation across the energy value chain and support growth across its three core pillars of EPCC, renewable energy and independent power production.
