Singapore-based offshore and engineering company Kim Heng may have seen its revenue during the first half of its 2023 financial year grow by 26% year on year, but the rising cost of business took a big chunk of that cash out of the net profit column in its latest financial report.

The company’s four business verticals brought home revenue of just under SGD 44.3m ($32.9m) during the first six months of the year as compared to the SGD 35m earned in the same period in 2022.

However, after all costs were deducted, net profit for the first six months of this year fell by 53% to SGD 1.9m as compared to the SGD 4.1m earned during the same period in 2022.

On the revenue front, Kim Heng’s latest figures showed the impact of the moves it has been taking over the past few years to establish itself in the renewables sector, where contracts it has secured for work on Taiwanese offshore projects have started to bear fruit.

The company reported that revenue from its renewables vertical came in at SGD 7.2m during the first six months of its current year, as compared to a mere SGD 282,000 in the same period of 2022.

Revenue from the organisation’s vessel chartering business vertical remained steady at SGD 11.5m, while the marine construction vertical increased revenue by 53% to SGD 13.4m.

Revenue from the oilfield services vertical fell by 14% to SGD 12.2m.

Broken down geographically, revenue generated in Taiwan, where the company is involved both as a renewables project partner and vessel provider, came in at SGD 15.9m — a 367% increase from the first half of 2022, making it the company’s largest revenue source.

Revenue earned in Singapore, which traditionally held the top spot, fell from SGD 18.9m to SGD 10.5m, dropping Kim Heng’s home turf into second place.

The company also registered a significant increase in revenue from the United Arab Emirates, which climbed to SGD 6.6m in the current first half from SGD 434,000 in the same period of 2022.

Kim Heng said no dividend has been declared or recommended for the first half of 2023.

The company did not provide any outlook guidance for the remainder of its financial year.