PEC profit pushes up 32% to S$3.3m

Strong 1QFY13 results for new financial year.

PEC Ltd. (PEC, and together with its subsidiaries, associated companies and joint venture companies, the Group) announced revenues increased by 9% to S$120 million and net attributable profit rose to S$3.3 million for the first quarter ended 30 September 2012 (1Q FY13).

"These improvements were driven by the continued strong execution of various EPC (engineering, procurement and construction) projects and maintenance contracts, as well as the tight rein over costs. As a result, net cashflow generated from operations also expanded to S$12.3 million in 1QFY13, rising from S$0.9 million in the previous corresponding quarter," PEC said in its results release.

Mr Robert Dompeling, PEC’s Group Chief Executive Officer, commented: “We were able to achieve these results because of our team’s hard work and steadfast focus on operational excellence.

“Going forward, global economic uncertainty, price competition and cost pressures, especially the tight labour market will continue to pose challenges to the Group’s business. However, there has been an encouraging trend in project enquiries in the Middle East and Asia and we are also seeing an increase in demand for maintenance services as clients continue to enhance their existing facilities.” added Mr Dompeling.

As at 30 September 2012, the Group had a net cash position of S$118.7 million or 47 S¢ per share. Its orderbook stood at S$212 million, which excludes maintenance projects and the project works announced recently.