UE E&C chalks up 190% rise in Q2 net profit to $19.7 million

Construction group UE E&C today reported a 190 per cent jump in second quarter net profit to $19.7 million on the back of a 12 per cent rise in revenue to $105.2 million.

The increase in revenue for the three months to June 30 was mainly due to higher contributions from new and on-going projects offset by completed projects.

Gross profit increased substantially to $26.5 million from $15.1 million, due to higher revenue and cost savings arising mainly from write back of provisions upon the finalisation of accounts on completed projects.

Consequently, gross margin increased to 25.2 per cent from 16.1 per cent in the same period last year.

Other income increased to $1.3 million from $500,000, mainly due to gain on disposal of held-for-trading investments.

Earnings per share grew to 7.3 cents from 2.5 cents previously while net asset value per share firmed to 77 cents compared to 73 cents as at Dec 31.