Shares of Kreuz Holdings, which provides subsea services to the oil and gas industry, rose as much as 7.6% today after the company reported a surge in third-quarter net profit and a set of new contracts, according to Reuters.
After the market close last night, the company posted a net profit of US$5.9 million ($7.4 million) for the three months ended September, more than six times the US$937,000 it earned a year earlier.
It also announced in a separate press release that it had secured contracts worth around US$57.5 million from its parent company Swiber Group, to do subsea installation work in India and Southeast Asia.
DnB NOR said in a report that Kreuz reported higher-than-expected revenue for the third quarter, but EBITDA margin of 25% was weaker than its forecast of 30% due to higher subcontracting costs.
Kreuz is on track in building its independent revenue stream, DnB NOR added. Third-party customers formed 81% of Kreuz’s total revenue of US$34.1 million in the third quarter, up from around 56% of total revenue of US$13.6 million a year earlier.
At 11:51 a.m., Kreuz and Swiber shares were up 4.6% and 2.5%, respectively, outperforming the broader Straits Times Index which was 0.1% lower.
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