Boustead 2Q FY2012 profit up 13% to S$9.1mn

Yet its 1H FY2012 profit fell 56% to S$17.6mn.

Mainboard-listed Boustead Singapore Limited (“Boustead” or the “Group”), a progressive global infrastructure-related engineering services and geo-spatial technology group today announced its unaudited financial results for the second quarter ended 30 September 2011.

For 2Q FY2012 and 1H FY2012, the Group achieved revenue of S$91.0 million and S$181.6 million respectively. Net profit attributable to owners of the company were S$9.1 million and S$17.6 million for the respective periods stated above, representing an increase of 13% and decrease of 56% respectively.

While the Group derived revenue and profit in 1H FY2011 from the S$67.8 million sale of an industrial leasehold property, there was an absence of a comparable property sale in 1H FY2012. Adjusting for the exclusion of the property sale in 1H FY2011, revenue and net profit attributable to owners of the company for 1H FY2012 would have decreased by considerably smaller margins of 29% and 5% respectively.

The Board declared an interim cash dividend of 2 cents per ordinary share, matching the interim cash dividend declared and paid in the previous corresponding period of FY2011.

In 2Q FY2012, the Energy-Related Engineering Division registered revenue of S$35.0 million, declining 8%. A higher proportion of revenue recognition is expected to occur in subsequent quarters as major projects progress beyond the initial stages of execution.

The Water & Wastewater Engineering Division achieved revenue of S$6.6 million, an increase of 14%. The division continued to make steady progress at its two major projects at Al Wathba in the UAE and Tuas Power Tembusu Multi-Utilities Complex in Singapore.

The Real Estate Solutions Division attained revenue of S$22.7 million, down 66%. The decrease was due mainly to slower revenue recognition on major projects under the industrial real estate solutions business as compared to the corresponding period last year when rapid progress was being made on two sizeable contracts. In addition, during 2Q FY2012, revenue was affected by the shift towards more design-build-and-lease projects which will strengthen future recurring income.

Revenue from Geo-Spatial Technology grew by 27% to S$26.5 million, underpinned by stronger demand for software and professional services across key markets in Australia and South East Asia.

All four core operating divisions registered profits in 2Q FY2012, according to a Boustead report.

Following the cessation of hostilities in Libya, the Group is reviewing the legal status of its projects.

Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead said, “While we are positioning ourselves for the challenging times ahead, our healthy order book puts us in a strong position and we expect our second half year performance to improve on the first half.”