KUALA LUMPUR (March 30): Engineering services firm Kawan Renergy Bhd (KL:KENERGY) posted a 17% rise in net profit for the first quarter ended Jan 31, 2026 (1QFY2026) to RM5.77 million from RM4.93 million a year earlier, in line with higher revenue.

Quarterly revenue increased 51% to RM44.39 million from RM29.33 million, mainly driven by higher revenue recognition from ongoing projects in the renewable energy and co-generation plants segment which progressed steadily. The segment's revenue surged to RM22.05 million from RM790,000 in 1QFY2025, according to a bourse filing.

Meanwhile, the industrial process equipment segment recorded a 14% rise in revenue to RM16.49 million from RM14.43 million but the industrial process plant segment posted a 61% fall to RM5.42 million from RM14.08 million.

Kawan Renergy did not declare a dividend for the quarter.

Managing director Lim Thou Lai said in a statement that while the company continues to focus on its business strategies, uncertainties in the Middle East may impact the operating conditions of the company.

Noting that the current oil crisis highlighted the need for energy independence, Lim said, "Malaysia's initiatives such as the National Energy Transition Roadmap provide clear direction. Kawan Renergy is in the right space in supporting these initiatives and remains committed to our client in meeting their expanding energy needs.”

Kawan Renergy, which provides design, fabrication, installation and commissioning solutions, will continue to strengthen its fundamentals to weather the current macro challenges, Lim said.

As at Jan 31, 2026, the company’s order book stood at RM86.6 million, with net tangible assets at 21 sen per share and a net cash position of RM30 million.

Shares of Kawan Renergy closed unchanged at 42 sen, valuing the company at RM231.03 million.