Rotary Engineering posts 81% slump in 3Q earnings

SINGAPORE - Oil and gas engineering services provider Rotary Engineering has posted a 81 per cent slump in third-quarter earnings on the back of lower revenue.

Net profit for the three months ended Sept 30 came in at $1.2 million, well down from $6.3 million in the same period a year earlier.

Revenue slid 13 per cent to $52.6 million as the group neared completion on major projects.

No dividends were declared.

For the nine months to Sept 30, net profit sank 78 per cent to $3.8 million, while revenue fell 22 per cent to $169 million.

Earnings per share for the quarter was 0.2 cent, much lower than 1.1 cents previously. Net asset value per share rose to 51 cents as at Sept 30, up on the 50.9 cents as at Dec 31 last year.

Rotary said in its earnings report on Tuesday that it won contracts worth $64 million during the quarter despite the difficult conditions in the oil and gas market. Its order book, excluding maintenance, stood at $153.9 million.

Rotary shares closed flat at 39 cents, before the results were announced.