Perma-Pipe Posts Strong Q3 2024 Results With 29 Pct Increase In Net Income

KUALA LUMPUR, Dec 24 (Bernama) -- Perma-Pipe International Holdings Inc’s net income for the third quarter ended Oct 31, 2024 (Q3) increased to US$2.5 million from US$1.9 million in the same period last year, mainly driven by better project execution. (US$1=RM4.48)

Net sales, however, declined nine per cent to US$41.6 million for the quarter, from US$45.7 million previously, as a result of the timing of project execution.

The company's backlog in the third quarter reached a record of US$114.2 million, equivalent to approximately nine months of revenue based on past years, showing significant growth from US$68.5 million on Jan 31, 2024.

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This growth in backlog represents the highest level since the company's transition from MFRI to Perma-Pipe in March 2017.

Its President and Chief Executive Officer, David Mansfield stated that the significant rise in infrastructure spending in Saudi Arabia, India, and the United Arab Emirates, has driven the company's improvements.

“We are pleased with the level of business activity we have experienced and continue to see, as supported by the significant rise in backlog and share price,” he said in a statement.

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Meanwhile, basic earnings per share from continuing operations was US$0.31 compared to US$0.24 a year ago.

Gross profit improved by US$0.9 million, reflecting better margins from product mix. General and administrative expenses rose by US$1.6 million due to higher payroll and professional fees, while selling expenses decreased by US$0.3 million.

Net interest expense remained consistent at US$0.5 million, and other expenses dropped due primarily to exchange rate fluctuations in foreign currency transactions.

-- BERNAMA