KUALA LUMPUR (Nov 27): Wah Seong Corp Bhd's net profit fell 20.1% to RM24.49 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM30.65 million a year ago, on lower contribution from the oil and gas (O&G) segment.

This resulted in a lower earnings per share of 3.17 sen for 3QFY18 compared with 3.97 sen for 3QFY17.

Quarterly revenue also declined 6.4% to RM701.92 million from RM750.06 million a year ago.

In a filing with Bursa Malaysia today, Wah Seong said the slight decrease in revenue in the current quarter under review was mainly the result of lower level of activities in the Malaysian operations.

"This decrease in revenue and the share of losses from associates and joint ventures resulted in a decrease in the (O&G) segment pre-tax profit in 3QFY18 compared with 3QFY17," it added. 

Nevertheless, for the cumulative nine months (9MFY18), the group posted a 58.9% increase in net profit to RM74.77 million from RM47.06 million a year ago, while revenue grew 49% to RM2.25 billion from RM1.51 billion in 9MFY17.

Wah Seong said its current order book amounts to RM1.6 billion, comprising RM1.2 billion for O&G, RM282 million for renewable energy, and RM57.7 million for industrial trading and services.

"The order book remains healthy and ensures that the group has a good flow of work for execution in the current year which is expected to contribute positively to the group’s results for the rest of 2018," it added.

Wah Seong shares closed 1.5 sen or 1.82% lower at 81 sen today, for a market capitalisation of RM624.07 million. The counter has fallen 30.2% over the past year from RM1.16.