Rotary Engineering posts record revenue of S$ 704.2 mln revenue for FY2010

The EPCM services provider registered an 18% jump in profit for last year, raking in S$63.7mln for its owners.

Rotary Engineering’s revenues increased 28% from S$551.9 million previously, owing to the group’s profitable operations overseas. Saudi Arabia accounted for 64%, and the rest was from ASEAN.

Due to the company’s impressive performance, its Board of Directors is proposing a final dividend of 3.8 cents per share.

Earnings per share for the year was 11.2 cents against 9.6 cents a year ago, an increase ago of 17%.

On a quarterly basis, the Group recorded a net profit attributable to owners of the parent of S$27.1 million, up from the S$26.2 million it achieved in the previous corresponding quarter.

At the topline, it registered revenues of S$159.6 million in 4Q2010, an increase of 9% from the S$147.0 previously.

For the quarter, gross profit margin was stable at 30%, similar to what it registered in the previous corresponding quarter.

Rotary is currently working on two EPC contracts in the Middle East: a US$745 million EPC contract from Saudi Aramco Total Refining and Petrochemical Company (SATORP) in Saudi Arabia, and a US$250 million contract for Fujairah Oil Terminal in the United Arab Emirates.

Rotary’s Chairman and Managing Director Chia Kim Piow said, "It’s been a challenging, eventful and fruitful year. My team has worked very hard and I’m very pleased to see this translated into good results, reflected both on our topline as well as our earnings.

“As we deliver and strengthen our position in the Middle East, we continue to seek out business opportunities in ASEAN as well as in new markets,” he added.

For 2010, Rotary Engineering maintained a strong financial position with total assets of S$739.1 million, net tangible assets of S$297.6 million, net working capital of S$214.1 million and cash and cash equivalents of S$137.0 million.

The Group is making progress on the SATORP site with manpower on the ground of over 3,300. Rotary’s scope of work includes the full range of engineering, procurement, construction activities involving 62 Atmospheric Storage Tanks and eight Bullet Tanks.

When completed, the 400,000 barrels per day export refinery will be one of the most advanced in the world and will refine crude oil into finished products for local and international markets.

“The high demand for energy in various markets will continue to fuel business opportunities for us. We envisage that business activity levels will continue to be high and we expect to stay busy, going forward,” Chia said.

The chairman added that for this year, Rotary will continue to develop ASEAN and prospect in the Middle East region as well as new markets like Europe.

In the Middle East market, activities will continue to centre mainly on the Gulf Cooperation Council countries, which include Saudi Arabia, the United Arab Emirates and the Sultanate of Oman.