Wah Seong Corporation Bhd posted a higher pre-tax profit of RM245.782 million for the financial year ended Dec 31, 2009 compared with RM152.913 million in the previous financial year.
In an announcement to Bursa Malaysia, the company said the increased profit was contributed by its specialised pipe coating and corrosion protection services business.
Revenue for the year, however, declined to RM1.95 billion against RM2.343 million previously due to a lower turnover in the engineering, infrastructure and building material businesses as well as from the impact of disposing of its pipeline contracting business.
It said the increasing demand for gas in Asia and with improvement in crude oil price, major oil and gas infrastructure projects that had previously been in planning stages are being activated. "This has resulted in an increase in request for bids and the award of contracts in recent months," the company said.
Wah Seong said its industrial services division will continue to benefit from the projects generated from the government stimulus packages implemented in the country and in the region. "Although the group may experience a slight slowdown in its operations in the early part of 2010, this is expected to reverse in the second half," it said. "The group's overall performance for the financial year 2010 is expected to be positive," the company said. -- Bernama