| Nordic Group's 1Q net profit came in at $2.1 million, down 40% y-o-y from $3.4 million. Key reason: The absence of contribution from a multi-year contract that was completed in mid-2Q2018.
The orderbook is made up of project and maintenance contracts for oil majors in Singapore. This potential normalisation of earnings for 2019, in part, will be "aided" by the weak 4Q18 profit of $218,000 (which was mainly due to one-off admin expenses to right-size its system integration business). In 2018, Nordic achieved $11.3 million net profit. |
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Over time, Nordic's system integration business has been down-sized owing to the weak marine industry (providing automation systems for new ships and existing ships). 
Executive chairman Chang Yeh Hong.
NextInsight file photo.The system integration business unit has instead sought to make inroads into various onshore industries.
"We have had some success and now we are quoting and moving into the oil & gas process industry. It's slow -- moving into that space takes time because of the certifications, references needed," said Mr Chang Yeh Hong, the executive chairman, at a 1Q19 results briefing last week.
Nordic's pillars of strength are its scaffolding and insulation services to oil majors.
They are expected to win contracts in the upcoming massive multi-year project called CRISP, an acronym for Chemical and Refining Integrated Singapore Project.
Nordic is well-positioned to be awarded work because it is the resident contractor for that particular oil major.
"Hopefully, we get a nice piece of the pie," quipped Mr Chang.
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The 1Q19 Powerpoint presentation material is here.
