KUALA LUMPUR (Nov 24): Kelington Group Bhd (KL:KGB) has declared a special interim dividend of 1.5 sen per share, alongside a third interim dividend of 2.5 sen per share, after its net profit for the third quarter rose 25% to RM41.14 million.
The latest payouts — totalling four sen per share or RM30.98 million — will be paid on Jan 21. This follows a second interim dividend of 2.5 sen per share paid in October and a first interim dividend of 2.5 sen per share paid in July, bringing year-to-date dividends to nine sen per share, up from six sen per share for the same period last year.
The stronger earnings for the third quarter ended Sept 30, 2025 (3QFY2025) were driven by reduced unrealised forex losses and higher contributions from Singapore operations, offsetting declines in revenue from China and the industrial gases segment, Kelington said in a filing with Bursa Malaysia on Monday.
Earnings per share improved to 5.43 sen, from 4.83 sen in 3QFY2024.
Quarterly revenue increased 3% year-on-year to RM316.37 million from RM307.31 million.
Gross margin stood at 22.53%, down slightly from 22.8% in 3QFY2024, while operating margin rose to 17.1% from 13.9%. Operating expenses fell 27%, while finance costs declined 21% to RM1.91 million.
For the nine months ended Sept 30, 2025, Kelington's net profit rose 19.3% year-on-year to RM100.67 million, though revenue slipped 10.2% to RM868.67 million, mainly due to lower contributions from Malaysia and China. The group’s improved earnings were supported by a more favourable project mix with higher profit margins and improved interest income.
Gross margin for the nine months improved to 21.27% from 18.45% a year earlier, while operating margin increased to 14.13% from 11.44%. Operating expenses fell 31%, while finance costs dropped 13%.
Kelington said it secured RM1.14 billion in new contracts year to date, lifting its outstanding order book to RM1.64 billion. It also marked its entry into Europe with a first project win in Dresden, Germany.
"This project provides a strong foothold for future expansion, with more projects expected through to 2027," the group said.
Kelington’s net cash position rose to RM292.62 million as at Sept 30, from RM227.83 million at end-2024, while total debt declined to RM178.38 million from RM185.28 million.
"This increase was largely driven by project-related cash inflows and proceeds from the exercise of warrants," it explained.
Kelington sees a positive outlook, underpinned by rising global semiconductor investments and Malaysia’s National Semiconductor Strategy, which it said has attracted over RM71 billion in investments as of June 2025.
The group said it is also expanding its capabilities in sustainable engineering to meet future demands for solutions such as carbon capture, utilisation and storage, green hydrogen, and bio-compressed natural gas.
Shares in Kelington closed up 15 sen or 2.78% at RM5.55 on Monday, valuing the group at RM4.32 billion. The stock has gained over 58% year to date.