SINGAPORE (Feb 12): Construction & engineering services provider Civmec saw its earnings for 2Q18 surge 17-fold to $6.9 million from $0.4 million in 2Q17 as revenue more than doubled.
Revenue for 2Q18 ended Dec grew 158.7% to $179.7 million from $69.4 million a year ago due to higher contributions from existing contracts as projects ramped up during the period.
However, gross margin decreased on-year to 4.5% from 9.3% in 2Q17, even as gross profit was up 33.2% at $8.6 million compared to a year ago, due to the impact of proceeds of a significant insurance claim relating to a fire at end-Sept 2017 which was recorded under Other Income.
The allocation of tendering and human resource costs to operational divisions further contributed to the decline in gross margin.
Administrative expenses for 2Q18 fell by 29.2% to $5.2 million from $7.3 million in the preceding year, largely as a result of the reallocation of expenses to cost of goods sold.
The latest 2Q results brings Civmec’s earnings for 2H18 to $10.7 million, up 61.3% from $6.6 million in the previous year.
As at end 2017, the group’s order book amounted to $573.5 million.
Looking ahead, Civmec says it remains positive about its outlook while noting strong tendering activity across its operating sectors. The group also believes it is well-positioned to capitalise on the significant pipeline of capital spend in Australia over the next 10 years.
Shares in Civmec closed 1 cent lower at 52 cents on Monday.
