Boustead Singapore 3Q earnings skyrocket by 373% to S$26.2m

Real estate solutions division performed admirably.

In a release, Mainboard-listed Boustead Singapore Limited (Boustead), an infrastructure-related engineering  services and geo-spatial technology group, has announced revenues of S$141.5 million and net profit attributable to owners of the company of S$26.2 million in 3Q FY2013, an increase of 49% and 373% respectively, over 3Q FY2012. Net profit includes a S$5.8 million gain on disposal of an available-for-sale investment and a S$3.4 million income tax refund. 

Boustead Singapore said the strong 3Q FY2013 financial results raised the 9M FY2013 revenue to S$367.1 million and net profit attributable to owners of the company to S$53.7 million, an increase of 33% and 132% respectively. All four core operating divisions delivered profitability, led by the strong performance of the Real Estate Solutions Division. 

The Real Estate Solutions Division achieved a more than doubling of its revenue to S$77.0 million, an increase of 121%. The division’s strong quarterly performance was due to the satisfactory completion of projects from the sizeable order book backlog of design-and-build projects carried through from FY2012.

The Energy-Related Engineering Division generated revenue of S$31.5 million, up 13%. Timely progress was made across the majority of major projects within the downstream and upstream oil & gas businesses, and the solid waste energy recovery business.

The Water & Wastewater Engineering Division contributed revenue of S$6.0 million, down 23%. This was due to the implementation of fewer projects as a result of a lower order book backlog as compared to the previous year’s corresponding quarter. 

Revenue from Geo-Spatial Technology rose by 9% to S$27.0 million, underpinned by strong demand in Australia. 

Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead said, “With year-to-date net profit closing in on that achieved for the whole of FY2012, we expect full year net profit to significantly surpass that of FY2012.”

Mr Wong added, “Our focus continues to be on building up the order book backlog for FY2014. In addition, we are continuing to explore all available avenues for growth through M&A activities, and to deploy our strong cash position.”

The Group’s order book backlog currently stands at S$340 million (as at the end of 3Q FY2013 plus new orders since then), a significant increase over the S$288 million stated in the 2Q FY2013 financial results announcement. The Real Estate Solutions Division experienced a recent flurry of enquiries to contract conversions, securing S$144 million in new contracts since October 2012. Enquiry pipelines remain healthy across the four core operating divisions although negotiation periods remain slightly protracted.

The Group’s net asset value per share increased to 53.8 cents at the end of 9M FY2013, up from 50.4 cents at the end of FY2012. Since the Group’s last update in the 2Q FY2013 financial results announcement in respect of the Group’s financial exposure in Libya on the Al Marj Project, there have been no material developments. Based on professional legal advice, the Group continues to maintain its view on the strength of its case.