Nordic Group has clinched some $35.6 million in contracts with new and repeat customers in the marine, oil & gas, petrochemical, infrastructure and semiconductor industries.

 

Of this, $14.1 million worth of contracts was secured by the cleanroom, air & water engineering solutions division. 

Contracts for supply of spare parts, installation and tools hock-up of semiconductor plants will end in 2Q2022, while that for the maintenance of waste water treatment plant extends for 15 years till 2Q2038.

 

The precision engineering division secured $9.7 million in contracts for machining services and mechanical assembly till 3Q2021 and 4Q2021 respectively.

 

The insulation services division secured some $5.9 million in deals. This includes a capital project from a new customer that will run from 3Q2021 to 2Q2022.

 

Meanwhile, the scaffolding, petrochemical and environmental engineering division secured $3.1 million for works such as scaffolding, inspection and load testing of lifting equipment and pressure vessels and maintenance of plant and equipment.

 

Most of these contracts will attain completion in 3Q2023.

 

Other contracts include some $2.8 million for the manufacture of valves and actuators, control and tank gauging systems. These were clinched by the system integration division and will complete in 2Q2022.

 

In a regulatory filing on Aug 4, executive chairman Chang Yeh Hong said the contracts are &ldquo not expected to have material impact on the consolidated net tangible assets per share and earnings per share of Nordic for the current financial year&rdquo .

In its business update for the 1QFY2021 ended March, Nordic Group has reported revenue of $24.5 million, 20% higher than revenue of $20.5 million in the same period the year before.

 

This was contributed mainly by cleanroom, air and water contracts, followed by precision engineering services.

 

Earnings per share (EPS) stood at 0.9 cents, from 0.4 cents in the 1QFY2020.

 

Net asset value (NAV) per share stood at 23.7 cents from 22.8 cents as at Dec 31, 2020.

 

Net profit surged 119% y-o-y to $3.5 million from $1.6 million in the 1QFY2020.

 

EBITDA stood 62% higher y-o-y at $4.7 million.

 

Gross profit margin (GPM) rose 11 percentage points y-o-y to 26% while net profit margin rose six percentage points to 14% during the quarter.

 

EBITDA margin stood five percentage points higher y-o-y at 19%.

 

The group reported an order book of $113.7 million as at end-March, of which $75.3 million are from maintenance contracts, while $38.4 million came from new projects.

 

Its order book stood at $122.7 million as at May 24.

 

Cash and cash equivalents as at end-March stood at $45.4 million.

 

In its business update, the group says it looks forward to see a &ldquo better performance&rdquo back to pre-Covid-19 levels after its businesses and performance were negatively impacted by the pandemic.

 

All of its entities have resumed work with some disruptions since 2HFY2020.

 

The group add that it &ldquo remains optimistic&rdquo with the contract wins secured to date, the cost and risk management initiatives, as well as the opportunities for mergers and acquisitions (M& As).