Boustead Singapore's Q3 earnings fall 30%

Engineering services provider Boustead Singapore's third-quarter net profit slumped by 30 per cent to $18.4 million on the back of an 8 per cent drop in revenue to $129.7 million.

The results for the three months to Dec 31 included non-recurring items: $5.8 million gain on disposal of an available-for-sale investment and $3.3 million income tax refund.

After adjusting for such non-recurring items, the net profit would have been 7 per cent higher.

Likewise, net profit in the first nine months fell by 16 per cent to $45.2 million.

Butafter adjusting for significant non-recurring items, it would have been 16 per cent higher than the previous corresponding period.

Revenue for the nine months inched up 1 per cent to $371.7 million.

The energy-related engineering division boosted revenue to $49.5 million, up 57 per cent, on the robust recovery of the downstream oil and gas business.

But amid the continuing competitive landscape globally, the water & wastewater engineering division suffered a 63 per cent fall in revenue to $2.2 million.

The real estate solutions division recorded a 34 per cent drop in revenue to $51 million.

The reduction in design-and-build revenue was partly due to fewer projects implemented during the quarter and the ongoing strategy of expanding the industrial leasehold portfolio, which will provide increasing recurring rental income in future.

The geo-spatial technology division achieved a 7 per cent revenue improvement in the third quarter.

However, due to the weaker Australian dollar, the translated revenue in Singapore dollar terms for both quarters was similar.

Quarterly earnings per share shrank to 3.6 cents from 5.2 cents previously while net asset value per share climbed to 64 cents compared to 60 cents as at March 31, 2013.

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