Boustead reports Q4 profit drop as oil slump hit business

Wong Fong Fui, chairman & group CEO, Boustead Singapore, attends the 30th Singapore Business Awards (SBA) 2015 held at the Resorts World Sentosa ballroom on April 27, 2015. Boustead Singapore reported a lower net profit for the fourth quarter and
Wong Fong Fui, chairman & group CEO, Boustead Singapore, attends the 30th Singapore Business Awards (SBA) 2015 held at the Resorts World Sentosa ballroom on April 27, 2015. Boustead Singapore reported a lower net profit for the fourth quarter and full year, as earnings were affected by the choppy economic environment. -- BT PHOTO: JOSEPH NAIR

SINGAPORE - Boustead Singapore reported a lower net profit for the fourth quarter and full year, as earnings were affected by the choppy economic environment.

Net profit for the mainboard-listed infrastructure engineering company in the three months to March 31 was $17.9 million, a 30 per cent year-on-year decline from a year ago.

This came as revenue for the period dropped 14 per cent year-on-year to $122.3 million, due partly to weaker contribution from energy-related businesses amid lower oil prices.

For the full year, revenue was up 8 per cent year-on-year to $556.4 million, but net profit declined 10 per cent to $63.3 million.

Earnings per share for the fourth quarter were 3.4 cents, down 32 per cent year-on-year, while net asset value stood at 73 cents at the end of the financial year.

Nonetheless, Boustead Singapore proposed a final dividend of two cents per share, lifting total dividend for the year to 19.5 cents per share - the company's highest on record.

Chief executive Wong Fong Fui said the results were respectable despite market uncertainties.

"However, I would like to caution that financial year 2016 could prove to be even more challenging, given the sustained slump in global crude oil prices which has significantly delayed some sizeable contract awards to our energy-related engineering division and significantly reduced our order book backlog in the oil and gas engineering division."

Boustead Singapore secured around $393 million worth of new contracts in the past financial year, and its order book backlog is currently around $388 million.