KUALA LUMPUR: HSS Engineers Bhd's net profit surged to RM3.89 million in the second quarter (Q2) ended June 30, 2022, from the RM1.57 million recorded in the same quarter a year ago.
In a statement today, the engineering and project management consultant said this was due to the favourable project mix from project management consultancy (PMC) works for Phase 1 of the Pan Borneo Highway Sabah project.
In particular, contributions from the PMC segment catapulted 245.6 per cent to RM12.8 million from RM3.7 million a year ago, which mitigated the lower revenue in the engineering services segment in line with project progress.
In Q2, the company's revenue eased 2.9 per cent to RM37.87 million from RM38.99 million.
HSS said similar product mix was also reflected in the first half ended June 30, 2022, where group net profit jumped 81.6 per cent to RM6.4 million from RM3.6 million, despite revenue moderating to RM74.3 million from RM82.9 million previously.
As at June 30, 2022, HSS' unbilled order book stood at RM529.4 million, providing earnings visibility over the next five years.
This had yet to incorporate the RM997.4 million appointment of the HSS joint venture (formed by HSS Integrated Sdn Bhd and HSS Engineering Sdn Bhd) by MRT Lingkaran Sdn Bhd to undertake the PMC role for the Mass Rapid Transit Circle Line (MRT 3), which will contribute to the company from Q3 of 2022 till 2033.
Executive vice chairman Tan Sri Kuna Sittampalam said the company's strong financial performance this quarter underscored its improving fundamentals.
He said this positioned the company aptly for the coming quarters as it undertook major projects including the PMC works for MRT3 totalling nearly RM1.0 billion.
"Having established our homegrown building blocks through the Independent Consulting Engineer roles in MRT 1 and MRT 2, HSS has both the expertise and track record to confidently project manage MRT 3.
