Boustead's fourth-quarter earnings get a 124% boost

But 'severely depressed' global oil and gas industry affected overall results, says firm

Engineering and technology group Boustead Singapore's earnings received a boost in the fourth quarter, but the firm said "the severely depressed" global oil and gas industries had a major impact on its overall results.

Net profit spiked 124 per cent to $9.2 million for the three months to March 31 from a year earlier.

After adjusting for other gains and losses for a comparative review, net profit for the period soared 391 per cent to $5.9 million.

Revenue for the quarter dipped 19 per cent to $91 million.

For the 12 months to March 31, net profit rose 18 per cent to $33.3 million. After adjustments, net profit dipped 9 per cent to $25 million. Full-year turnover fell 11 per cent to $433.8 million.

Boustead, in a statement yesterday, said: "The group's revenue is largely derived from project-oriented businesses and, as such, quarterly results would not accurately reflect the full-year's performance."

Full-year revenue for the energy-related engineering division - hurt by the oil and gas industries - slid 25 per cent to $96.5 million.

"Despite the Organisation of the Petroleum Exporting Countries' significant cuts to global supplies, decisions on major oil and gas capital expenditures continued to be deferred,"said Boustead.


    $9.2 million (+124%)

    $91 million (- 19%)

    ​1.5 cents a share

Full-year turnover for the real estate solutions division fell 11 per cent to $228.3 million, despite being the top revenue contributor among Boustead's divisions.

It was hurt by lower revenue from the design-and-build and leasing businesses.

Boustead chief executive Wong Fong Fui said: "Even in the face of lower revenue and gross margin pressure, we maintained profitability across our three divisions. Our net profit benefited from a boost provided by significant non-recurring gains at Boustead Projects."

Quarterly earnings per share was 1.8 cents, compared with 0.8 cent a year earlier, while net asset value per share was 61.7 cents as at March 31, compared with 58.3 cents as at March 31 last year.

Boustead proposed a final dividend of 1.5 cents per share.

Its shares closed one cent higher at 88 cents yesterday.

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A version of this article appeared in the print edition of The Straits Times on May 24, 2017, with the headline Boustead's fourth-quarter earnings get a 124% boost. Subscribe