Technics Oil and Gas gains 24% jump in profits

Thanks to robust EPCC projects.

According to an SGX release, Technics Oil and Gas Limited announced net profit attributable to shareholders of S$20.2 million for the twelve months ended 30 September 2012.

The Group posted historical high revenue of S$149.7 million in FY2012. Gross profit improved 24% year-on-year (“y-o-y”) to S$58.1 million while gross profit margins rose to 39% in FY2012 as compared to 37% in FY2011.

The Group has executed and completed more EPCC projects that command higher margins during FY2012. Notably, revenue contribution from EPCC projects increased 30% y-o-y to S$58.2 million in FY2012 as compared to S$44.9 million in FY2011.

Other credits jumped more than four folds to S$6.9 million in FY2012 largely due to oneoff gains amounted to S$5.6 million arising from the dilution in interest of Norr Offshore Group Limited and disposal of vessels.

Operating expenses (inclusive of marketing and distribution costs and administrative expenses) increased 27% y-o-y to S$33.6 million in FY2012 primarily due to depreciation expense, salary increment, professional fees, Technics Performance Share Plan, and additional expenses incurred by the newly setup subsidiaries.

But, operating expenses were tightly controlled, kept at 22% of the Group’s revenue in FY2012 as compared to 21% in FY2011.

The Group’s performance concluded FY2012 on a positive note, registering record net profit attributable to equity holders of S$20.2 million, represented by basic earnings per share of 9.78 Singapore cents in FY2012.