Boustead H1 net profit surges to $26m
Threefold increase on buoyant energy, real estate markets.
MAINBOARD-LISTED engineering group Boustead Singapore reported a more than threefold rise in half-year earnings, thanks to buoyant energy and real estate market conditions.
The company yesterday unveiled a first-half net profit of $26.0 million, a 227.2 per cent jump from the $7.9 million it earned during the April-September 2006 period.
This was achieved on the back of a 47.6 per cent jump in revenue to $206.2 million, from $139.7 million last year.
The company said that with this latest set of financial results, it was confident of achieving a sixth consecutive year of revenue and net profit growth. Boustead is proposing an interim tax-exempt cash dividend of three cents per share, a 50 per cent rise over the payout last year.
The star performer was its energy-related engineering division, whose revenue grew 37 per cent to $66 million as demand for its engineering services boomed amid record high global oil prices. The company clinched a slew of new energy projects across Africa, Asia, Europe and South America during the period.
Meanwhile, its real estate solutions division grew strongly in the wake of a boom in the Singapore construction industry. The division’s revenue shot up 76 per cent to $90.3 million, as Boustead secured several sizeable contracts, including two industrial leasehold property contracts. It also sold an industrial leasehold property in Singapore for $12.4 million.
Boustead also clinched a $300 million township construction deal in Libya during the first half. Revenue and net profit from this contract will flow in during the second half.
Boustead’s wastewater engineering division chalked up a 113 per cent leap in revenue of $16.0 million. But stiff competition, low barriers to entry, and delays in clinching new contracts means that this unit’s turnaround would be delayed beyond FY2008, the company said.
Geo-spatial technology registered steady, albeit marginally slower, revenue growth of 4.5 per cent. Overall, Boustead’s cash reserves grew by another $8.1 million to reach $127.5 million.
Wong Fong Fui, group chairman and chief executive officer, expressed satisfaction with the overall results.
‘With the exception of the water and wastewater engineering division, the strong revenue and net profit performance of our key divisions helped us post very commendable net profit growth. We expect our energy-related engineering, real estate solutions and geo-spatial technology to underpin continued growth in second half of FY2008.’ He expressed confidence that his company would register its sixth consecutive year of strong revenue and profit growth this year.
Source : Business Times - 15 Nov 2007
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