XMH’s net profit surged 69.3% to $3.6m in H1

Thanks to strong results from Z-Power Automation.

XMH Holdings, a diesel engine, propulsion and power generating solution provider in the marine and industrial sectors, reported that its net profit jumped 69.3% year-on-year to $3.6m in the first half of its financial year.

The group’s bottom line was boosted by the inclusion of Z-Power Automation’s results.

Revenue increased by 10.1% year-on-year to S$49.6 million in 1H2016, primarily supported by the increase of S$9.5 million in projects segment revenue, again due to the inclusion of ZPA’s results.

The increase in revenue was primarily dueto the progress of the projects and the completion in the reporting period, offset by lower revenues from distribution and after sales business segments. 

Moving forward into 2016, XMH expects its outlook to remain weak due to the oil downturn.

“The persistent sluggish demand for marine related products has led to some postponement of deliveries and the market for offshore business remains challenging given the low-oil-price environment. Adding to this, intensified competition in the building and construction industries has affected the Group’s related business. Overall, project sizes and profit margins for the Group as a whole have been under pressure,” XMH said in a statement to the SGX.