United Engineers' Q3 profits skyrocket tenfold to $84.84m

Bigger contributions from its property segments drove growth.

United Engineers' saw its net profit surge tenfold YoY to $84.84m in Q3 from $7.68m in 2018, the company announced. Revenue jumped 38% YoY to $112.37m over the same period.

For the first nine months of 2019, profit soared 264% to $100.9m, whilst revenue inched up 1% to $285.8m.

The company’s revenue increase for the quarter was mainly attributed to bigger revenue contributions from its property development to $37.8m and an 8% climb from property rental & hospitality to $34.4m for the quarter.

However, the increase was partially offset by a 28% fall in revenue contribution from its manufacturing operations to $11.8m, as well as a 22% drop from engineering to $19.1m.

Its interest income jumped 167% YoY to $2.7m for the quarter mainly from notional interest income on interest-free loan to an associated company, as well as higher interest income from fixed deposits.

Distribution and finance costs rose 18% to $6.2m and 21% to $7m, respectively. Other expenses was a credit of $1.0m, from $1.9m YoY.

The group plans to continue seeking investment and partnership opportunities, as well as making selective property acquisitions as part of its growth strategy.