Pan United Corp's profit hurt by insolvency of Downtown Line's main contractor

Pan United Corp has suffered a 24 per cent drop in second quarter net profit to $10 milion, due to a $2.2 million provision for doubtful debt.

The company also made a vessel disposal gain of $2.2 million in the same period last year.

Excluding these one-off items, the group's net profit would have been 10 per cent higher.

The provision for doubtful debt was from Alpine Bau GmbH, one of the main contractors of the Land Transport Authority's Downtown Line 2 project. Alpine filed for insolvency during the quarter.

Revenue rose by 5 per cent to $190 million for the three months to June 30, driven primarily by the Basic Building Resources (BBR) division.

Earnings per share eased to 1.8 cents from 2.4 cents previously while net asset value per share grew to 59 cents compared to 57.5 cents as at Dec 31.

An unchanged interim dividend of 1.5 cents a share was declared