KS Energy

KS Energy: 2Q13 net profit doubled 134% y/y to $1.6m while revenue rose 29.4% to $196.2m. Strong revenue was generated by strong project related sales in SSH Corporation and Aqua-Terra, and the commencement of charter contracts which were recently deployed in Indonesia. The bottom line was boosted by lower other operating expenses (-66.1%) due to a $3.4m allowance for doubtful receivables in 2Q12 and a $2.4m write-back of doubtful receivables in 2Q13. This was due to higher contributions from its distribution business of $154.7m (+43.1%), drilling of $35.7m (+13.1%) and engineering segment of $5m (+89.8%). Net gearing improved from 0.75x (Dec '12) to 0.59x.