Boustead Projects has reversed into the black with earnings of $5.9 million for the 1HFY2022, compared to losses of $2.2 million in the 1HFY2021.
Earnings per share (EPS) for the period stood at 1.9 cents from the loss per share of 0.7 cents in the 1HFY2021.
Total profit for the 1HFY2022 stood at $5.9 million from the total loss of $2.3 million in the previous year. This is due to the higher profit in the engineering and construction (E&C) segment and partly offset from the real estate business segment.
Gross profit increased 82% y-o-y to $11.5 million.
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Profit before income tax stood at $8.4 million from loss of $2.2 million in the year before.
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Revenue for the 1HFY2022 surged 104% y-o-y to $179.1 million, mainly due to the resumption of more normalized revenue recognition on E&C projects in the 1HFY2022, whereas E&C projects in Singapore were mostly closed in the 1HFY2021 under a four-month shutdown by the authorities.
The strong recovery was partly offset by lower real estate revenue. This was expected following the completion of sale of interests in 14 leasehold properties to Boustead Industrial Fund (BIF) in March.
The group’s current order backlog at the end of 1HFY2022 came in at $280 million.
As at end-September, it has a net cash position of $174.1 million.
“The operating environment remains challenging for our E&C business as additional pandemic-related costs are expected to persist even as Covid-19 measures ease. However, with the resumption of activities at project sites and having secured new E&C projects recently, the E&C business segment is showing initial signs of recovery and has returned to profitability for 1H FY2022,” says Thomas Chu, managing director of Boustead Projects.
“We are committed to delivering quality E&C projects despite the additional pandemic-related costs, while simultaneously rebuilding the order backlog. We expect the prospects for the E&C business segment to progressively improve as we complete the last of the pre-pandemic projects by early FY2023 and see better levels of business development opportunities as borders gradually reopen,” Chu adds.
“On our other front, the real estate business segment continues to provide stability to Boustead Projects with our recurring income streams and is focused on further unlocking long-term value both locally and regionally, as exemplified by our recent divestment of 351 on Braddell to BIF. We have also strengthened our fund management capabilities through BIF in Singapore and are working towards the establishment of KTG & Boustead Industrial Logistics Fund in Vietnam,” says Wong Yu Wei, executive deputy chairman of Boustead Projects.
“With the KTG & Boustead Industrial Logistics Fund in Vietnam, we envisage our real estate portfolio to grow strategically within the key industrial zones in the Greater Hanoi and Greater Ho Chi Minh regions, while further exercising our expertise in developing these logistics and industrial park facilities. This scalable real estate business strategy coupled with the progressive improvement in our E&C business is expected to provide a stable foundation for the future growth of Boustead Projects,” Wong adds.
Looking ahead, Boustead Projects says it expects to remain profitable for the FY2022.
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The group adds that it is “strongly positioned” to maintain multifaceted resilience in Singapore and its regional markets with its E&C and real estate business segments supported by enhanced and unified real estate capabilities.
Shares in Boustead Projects closed 0.5 cent higher or 0.50% up at $1 on Nov 11.
