Yongnam returns to profitability, with small profit of $733,000

SINGAPORE - Yongnam Holdings eked out a net profit of $733,000 in the first quarter, revering from a net loss of $1.9 million in the same period last year.

This was despite revenue at the structural steel contractor and specialist civil engineering solutions provider decreasing by 8.2 per cent to $65.9 million for the three months ended March 31.

Nonetheless, the group's gross profit doubled from $2.9 million to $5.9 million, as a result of better project margin from ongoing projects.

On the specialist civil engineering front, this included MRT Downtown Line 2, Downtown Line 3, Thomson Line and the Hong Kong MTR.

As for structural steelwork projects, ongoing projects included Marina One and Changi Terminal 4.

Mr Seow Soon Yong, chief executive officer of Yongnam, said, "The year-to-date has been a period of good progress for Yongnam, marked by our successful tender of the $159 million JTC Food Hub @ Senoko project with a joint-venture partner and a return to profitability."

The JTC Food Hub @ Senoko project is a major milestone for the group and "paves the way for new opportunities as a main contractor for Yongnam," he added.

Earnings per share for the three months ended March 31 was 0.06 cents, up from a loss per share of 0.15 cents a year back.

Net asset value per share rose to 23.72 cents at March 31, up from 23.68 cents at Dec 31.