KS Energy sources and distributes oil and gas equipment, general hardware, hydraulic equipment, instrumentation, spares, and parts.
The Group's revenue rose by $44.2 million or 69.6% to $107.7 million from $63.5 million in Q1 FY2007. The growth in the revenue is broad base for both capital equipment & services business and distribution business in Q1 FY2008. Revenue from distribution business increased by 21.7% to $69.0 million from $56.7 million in Q1
FY2007. Revenue from capital equipment & services business increased by 469.1% to $38.7 million from $6.8 million in Q1 FY2007. For capital equipment and services business, Atlantic Oilfield Services Group (“AOS”) which was acquired in May 2007 registered revenue of $19.6 million in Q1 FY2008 (nil in Q1 FY2007).
Group gross profit rose by $21.5 million or 127.7% to $38.3 million (Q1 FY2007 $16.8 million). The quarter also saw improvement in the Group’s profitability as gross profit margin rose from 26.5% (Q1 FY2007) to 35.6%. Higher gross margin was mainly due to the higher margin derived from capital equipment and services business.
Net profit after tax in Q1 FY2008 rose by $6.2 million or 99.2% to $12.5 million from $6.3 million in Q1 FY2007. Of this amount, net profit attributable to equity holders increased by $5.8 million or 107.4% to $11.1 million (Q1 FY2007 $5.3 million).
KS Energy is well-positioned to benefit from the favourable market condition. The acquisition of AOS and its integration into the KS Energy Group will enable the Group to rapidly move up the value chain. In the first quarter of FY2008, KS Energy secured the time-charter for its 300-feet cantilever jackup rig, “KS Medstar-1”, which commenced operation in the Mediterranean Sea in the second quarter. “KS Discoverer III”, a 1500 hp land rig also commenced operation in the Badin Field in Pakistan in the second quarter.
Historical PE is 5.63, this stock is simply misunderstood by the market. I expect share price to rise tremendously over the next few months.
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