New project wins bolster profits at Rotary Engineering

Rotary Engineering has posted second quarter net profit of $5.1 million, a marked improvement over the $1 million it made in the same period last year.

Revenue for the three months to June 30 rose by 13 per cent to $126.2 million, due to increased business activities from new projects wins since the beginning of this year.

Gross profit margin at 12 per cent, mainly from contributions of new projects, were a significant improvement from the corresponding quarter last year where the Group were impacted by cost overruns from the construction phase of a project in Saudi Arabia.

Earnings per share firmed to 0.9 cent from 0.2 cent previously while net asset value per share climbed to 34.3 cents compared to 34 cents as at Dec 31.

Rotary has won about $700 million worth of new contracts since the beginning of the year, bringing its total order book to $1 billion.

Of this amount, more than 60 per cent is attributed to projects in Singapore.

The group is cautiously optimistic for the year ahead, underpinned by its strong order book.