Nordic Group reports 49% earnings jump for 1HFY2022, plans higher interim dividend

The company's order book is now $232.7 million

Nordic Group has reported earnings of $11.6 million for 1HFY2022 ended June 30, up 49% y-o-y.

Revenue in the same period was up 62% y-o-y to $79.8 million, as it fulfilled more contracts in service and maintenance.

The company, led by executive chairman Chang Yeh Hong (picture), plans to pay an interim dividend of 1.162 cents per share, versus 0.98 cents per share paid for 1HFY2021.

Nordic says it won new contracts of some $170.6 million in 1HFY2022, bringing its total order book to $232.7 million. The orders are to be fulfilled over the coming three years.

Of the new orders, $90.1 million came from Starburst, which builds and maintains shooting ranges.

Earlier this year, Nordic completed the acquisition of Starburst for $62 million.

“The group is optimistic with the number of contract wins, signifying the long-term recovery and prospect of the operational sectors, and will continue to manage the costs and risks prudently so as to deliver value to shareholders,” says the company.

Citing a survey from the Singapore Economic Development Board, Nordic notes that the highlights the marine and offshore engineering sector is seeing better sentiment along with higher energy prices.

The precision engineering sector, which it serves as well, is also seeing higher production levels, which is in contrast to the wider manufacturing sector.

Nevertheless, the group is “mindful of the possibility of new Covid-19 variants pushing the global supply chain and travel back on restrictions.”

“The global inflationary pressures are also monitored to adjust for the impact on the necessary materials,” the company says.

Nordic shares last traded at 41.5 cents, up 0.5 cent for the day.

 

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