Steel supplier BRC Asia has reported earnings of $47 million for the financial year ended Sept 30, up 131% y-o-y.
Revenue in the same period was up by 91% y-o-y to $1,17 billion, thanks to higher sales volume with the pick-up in construction activities, coupled with higher selling prices in tandem with increasing international steel prices.
The company’s bottomline enjoyed a boost from favourable currency movements as well.
Earlier this year, another listed company Hong Leong Asia, which has business in building materials as well, became BRC Asia’s key shareholder following an investment of $45.9 million.
The two companies will work together to explore new business opportunities.
BRC Asia plans to pay a final dividend of four cents and a special dividend, also of four cents. On top of the interim dividend already paid, the company will be paying a total of 12 cents per share, which translates into a payout ratio of around 60%.
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“With improving fundamentals and a robust balance sheet, and a committed team of experienced
professionals, we remain confident of dealing effectively with the changing landscape in our sector, and eventually emerge stronger,” says CEO Seah Kiin Peng.
As at Sept 30, the company’s order book stood at $1.2 billion.
BRC Asia closed Nov 29 at $1.50 up 0.67% for the day and up 2.04% year to date.
Photo: Albert Chua of The Edge Singapore
