SINGAPORE (Feb 8): Hai Leck Holdings saw earnings grow 18.2% to $2.2 million in 2Q, from $1.9 million a year ago, on the back of lower expenses.
This is despite the provider of engineering, scaffolding and corrosion prevention services in the petrochemical industry posting 18.8% lower revenue of $22.4 million in 2Q, from $27.5 million in the same quarter a year ago.
Cost of sales fell 20.6% to $10.0 million in the quarter ended Dec 31, 2016, compared to $12.6 million a year ago.
Operating expenses fell 21.2% to $10.4 million in 2Q from $13.2 million a year ago. This was mainly due to lower bonus and incentives in light of the uncertain economic outlook.
Cash and cash equivalents stood at $69.9 million as at Dec 31, 2016.
Hai Leck has declared an interim cash dividend of 2 cents per ordinary share and a special cash dividend of 3 cents per ordinary share for the period.
Looking ahead, Hai Leck says the outlook of oil and gas industry “remains uncertain”.
“The Group's results was buffered by non-oil and gas related businesses,” it adds.
Hai Leck last closed at 46 cents on Monday.
