Rotary Engineering's order book hits S$756m

Half of which are projects outside Singapore.

According to a release, Rotary Engineering has recorded revenue of S$102.8 million and a net profit of S$2.5 million for its first-quarter results ended 31 March 2013.

Rotary’s revenue this quarter as compared to revenue of S$133.4 million for the corresponding quarter in 2012, is within expectation as the Group’s new projects have just commenced.

These projects include two major projects such as the US$250 million contract for Fujairah Oil Terminal in the United Arab Emirates and the S$300 million expansion of the oil terminal at Pulau Busing in Singapore.

Gross margins remained stable at 15 per cent. Besides the two major projects mentioned above, work is also proceeding well at the Saudi Aramco Total Refining and Petrochemical Company (SATORP) project in Saudi Arabia as the Group focused on completing the project according to the revised schedule agreed with SATORP.

Administrative and finance costs were lower in line with revenue and reduced borrowings respectively. Foreign exchange loss in the current quarter was significantly lower as compared to a year ago due to reduced foreign exchange exposure and effective implementation of its foreign exchange management programme.

Rotary’s Chairman and Managing Director Mr Chia Kim Piow highlighted that the prospects for the oil and gas industry are bright due to strong demand for energy from China, India and the ASEAN. “We are pleased that our order book remain strong at S$756 million, about half of which can be attributed to projects outside Singapore. Rotary is staying busy, bidding for contracts in Singapore, around the region and the Middle East. We believe that we are on the right track to a start of a good year for Rotary."