IEV

IEV: Posted a + 69.6% yoy net profit to RM11.35m (US$3.64m) for 1H12. Turnover rose 225.8% to RM147.57m, on higher rev contribution from the offshore engineering sector and the mobile natural gas sector. Rev from the offshore engineering sector increased by 262% as a direct result of the group's undertaking of turnkey contracts in decommissioning and fabrication. Rev from the mobile natural gas sector increased by 54.8% due mainly to the 16.4% increase in the sales vol of compressed natural gas (CNG). However, Gross profit margin from the offshore engineering sector decreased by 10.2 ppt as a result of the change in product mix from the provision of specialised engineering solutions to turnkey services such as the decommissioning projects and the marginal field development project via platform reuse. Similarly, gross profit margin from the mobile natural gas sector decreased by 1.9 ppt due mainly to the increase in the cost of feed gas and diesel used in the production of CNG.