PEC after-tax profit stays steady at S$13m in FY13

Bigger story is its S$544.8m record revenue.

PEC Ltd. (PEC) was able to achieve record revenue of S$544.8 million for the full year ended 30 June 2013 (FY13), up 12% from S$487.2 million in FY12. This was despite challenging operating conditions in the industry, in particular intense market competition and rising labour costs.

Both of its core divisions – project works and maintenance services – made strong revenue contributions, especially from Singapore, testifying to the Group's successful efforts to retain market share in the sector. Overall, project works brought in S$397.9 million in sales, up from S$355.9 million in FY12, while the maintenance segment increased its contribution to S$146.2 million from S$130.4 million.

Mr Robert Dompeling, PEC’s Group Chief Executive Officer, commented: “The challenges we faced in the past year only heightened our resolve to capitalise on our strengths and to remain focused on our key markets. Our determination to uphold our leading position in the sector saw us land new clients as well as fresh contracts from existing clients, even as we worked to expand capabilities that will enable us to take on more multi-disciplinary projects."

The Group's FY13 after-tax profit stayed steady, coming in at S$13.0 million, even though reduced profit contributions from project works brought gross profit down by 4% to S$87.0 million. Lower gross profit was offset by gains from the disposal of fabrication facilities and an increase in sundry income, which boosted other operating income to S$11.9 million.

Looking ahead, Mr Dompeling said: “To mitigate against rising costs, the Group has started consolidating its operations and facilities and PEC has recently acquired a large facility at Benoi Lane with a view of setting up an integrated maintenance and fabrication site that includes dormitory facilities. This will enable the Group to achieve greater efficiency in its operations as well as control rising accommodation costs.”

“We expect operating conditions to remain difficult in FY14, but there are signs that the current industry downcycle is tailing off. PEC will continue to focus on growing its client base in the key markets that the Group currently operates in and will also build up its capabilities and resources to sharpen its competitive edge.”

As at 30 June 2013, the Group’s orderbook stood at S$160.5 million, excluding maintenance projects.