KS Energy, the integrated energy services provider, today announced a 28.1% rise in revenue but closed the quarter (3Q FY11) with a net loss of $11.5 million.
This was because gross profit margin was impacted by increased competition and lower margins from certain capital projects while operating expenses were also higher.
KS Energy also posted a loss of $11.8 million in the same quarter last year (3Q FY10).
Group revenue in 3Q FY11 totalling $132.4 million comprises 72.8% from its Distribution division, 22.3% from its Drilling division and 4.9% from Fabrication and Engineering and other non- core businesses.
Operating activities generated net cash inflow of $35.8 million.
At the close of 3Q FY11, the group’s cash and cash equivalents amounted to $63.4 million compared to $35.1 million in 3Q FY10.
Kris Wiluan, Chairman and CEO, says: “Our performance is affected by the adjustments that we are undertaking in the organization. This is an investment that we are making for our future. Nonetheless, we will continue to pursue new business opportunities in Indonesia -- an important market where demand for oil and gas services remains strong.”
As the global economies continue to weaken, the group expects that, amid the prevailing uncertainties, its businesses will be similarly affected.
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