KUALA LUMPUR (Aug 5): Frontken Corp Bhd (KL:FRONTKN) posted record-high earnings in the latest quarter thanks to stronger demand from oil-and-gas and semiconductor clients.

Net profit at the industrial services firm was RM47.72 million in the three months ended June 30, 2026 (2QFY2026), an increase of 43% compared with the same quarter a year earlier, according to an exchange filing on Wednesday.

Revenue growth was slower at 20% year-on-year to RM186.91 million as strengthening ringgit dragged on receipts in Taiwanese dollar. On a like-for-like basis, revenue from Taiwan would have grown 18% instead of 7% in the current quarter.

Still, Frontken said it remains optimistic about growth prospects of the semiconductor industry even as customers have remained “measured in their capital spending”.

Frontken mainly provides precision cleaning services to semiconductor facilities. In Taiwan, Frontken serves Taiwan Semiconductor Manufacturing Co — Asia’s biggest technology company producing advanced chips for clients such as Nvidia — amid a boom in artificial intelligence (AI).

The company also has a coating and equipment business catering to the oil and gas industry now seeing high prices from the conflict in the Middle East. Frontken said it expects demand for specialised maintenance and engineering services to remain resilient.

For the first six months of FY2026, net profit climbed nearly 40% to RM90.1 million. Revenue grew 30% to RM376.72 million as gross income from its Malaysian subsidiaries more than doubled driven by higher sales from supply-related activities in the oil and gas business.

An interim dividend of two sen per share was declared and payable at a date to be determined later.

Shares of Frontken rose six sen or 1.2% to RM5.22 at noon trading break, valuing the company at RM9.51 billion ahead of the results announcement.