Nordic Group Limited reported net profit of S$10.0 million for the six months ended Jun 30, up 21 year-on-year, as higher contributions from both project and maintenance services and a wider gross margin lifted the bottom line.

Earnings per share rose 19 YoY to 2.5 Singapore cents. The board declared an interim dividend of 1.0008 Singapore cent per ordinary share, 21 higher than the 0.8276-cent payout a year ago, maintaining a 40 payout ratio.

Revenue increased 3 YoY to S$87.2 million. Project services generated S$45.4 million, 2 higher YoY, while maintenance services contributed S$41.9 million, up 4 YoY. Gross profit improved 7 to S$20.6 million, pushing gross margin up one percentage point to 23.6 . Operating profit climbed 12 to S$13.1 million, supported by lower finance costs after the full repayment of two loan facilities earlier in the year.

Foreign-exchange losses narrowed to S$0.8 million from S$1.4 million, and the group produced S$11.4 million in operating cash flow, driving its net cash position to S$10.2 million at end-June from S$4.1 million at end-December.

The orderbook reached a record S$254.3 million, split 44 project services and 56 maintenance services, and includes S$71.5 million of new contracts scheduled mainly for delivery over the next 36 months. Management pointed to continued demand across marine, petrochemical, semiconductor and defence sectors, although it flagged persistent geopolitical tensions, inflationary pressures and currency volatility as near-term challenges.

The group said it will keep pursuing bolt-on opportunities and leverage its regional footprint in Thailand and India to capture semiconductor, marine and infrastructure projects while sustaining its recurring maintenance revenue base.