Engineering and project management consultant HSS Engineers Bhd’s revenue climbed to RM42.9 million in the third quarter ended 30 September 2021 (3Q21) compared to RM42.0 million previously, as the Project Management segment’s revenue doubled on project management works performed in the quarter.
The Project Management segment revenue increased to RM9.5 million in 3Q21 from RM4.5 million previously. This mitigated the marginal revenue reduction in the Group’s main revenue driver of Engineering Services comprising Engineering Design and Construction Supervision which amounted to RM31.2 million in 3Q21, from RM34.9 million a year ago in line with project progress.
The Group remained profitable in 3Q21 with a net profit of RM0.2 million, despite the impact of the Enhanced Movement Control Order (“EMCO”) period in the Klang Valley followed by either Phase 1 or 2 of the National Recovery Plan (NRP) in most states during the quarter.
Consequently, the performance in the said quarter was impacted by the delayed earnings arising from the delay in the mobilisation of staff for the RM145 million Project Management Consultant contract for the Pan Borneo Sabah project.
HEB Group’s Executive Vice Chairman Tan Sri Ir. Kuna Sittampalam was positive on the Group’s future prospects as the Group had resumed to 100% working capacity in its headquarters and in Pan Borneo Sabah Project since early October 2021, and was making progress in its digital and technology sector ventures alongside its existing strengths in the public transportation, port and water sectors.
Kuna Sittampalam said; “With 100% working capacity in our headquarters and normalised operations at most work sites at present, we are on track to progressively recognise earnings from our RM 548.3 million order book in the upcoming quarters. Having secured RM192 million in new contracts year to date, we foresee this momentum continuing in the fourth quarter and into 2022.
We remain cognizant of the immense opportunities in the digital and technology sector focusing on data centres as well as the 5G telecommunications space, in support of the Government’s focus on accelerating the digital economy in the wake of the pandemic.
We have embarked on a collaborative partnership approach with global leading data centre specialists to pursue engineering and project management opportunities in Malaysia and South East Asia. To date, we have been shortlisted for two Project Management Consultancy bids for upcoming data centre projects in the country.
These new sector ventures are expected to complement our current prowess in the public transportation, port and water infrastructure sectors.”
