Steel supplier BRC Asia has reported revenue of $717.1 million for 1HFY2023, down 10% y-o-y, because of lower sales to project owners.
Earnings in the same six-month to March 31 period was down 34% to $26.2 million, as the company sold a smaller proportion of higher margin products.
The company believes that despite the "challenging" operating environment, its fundamentals remain "robust", with cash and equivalents at $115.2 million as at March 31.
Its order book, as at March 31, was $1.42 billion, to be delivered over the coming five years.
BRC Asia plans to pay an interim dividend of 5 cents per share.
CEO Seah Kiin Peng says that the domestic construction sector is undergoing a transitional phase in the first quarter of 2023 where labour shortages are slightly easing and trained migrant workers are gradually added to the workforce.
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In addition to that, the local construction sector continued to grow and expand in 2Q FY2023, backed by a strong pipeline of construction projects.
"Even though these improvements have not been reflected directly in our 1H FY2023 results, we do believe that these bode well for the overall recovery of the sector," says Seah.
"BRC remains an integral part of Singapore's construction sector," he adds.
