SINGAPORE (Feb 12) Hai Leck Holdings announced that its 2Q18 earnings dropped 9.9% to $2.02 million compared to $2.24 million in 2Q17, binging 1H18 earnings to $4.24 million, 11.8% lower than $4.80 million last year.
Revenue for the quarter was 9.3% higher at $24.4 million from $22.4 million a year ago, due to an increase in project revenue.
Cost of sales for 2Q18 increased by 26.0% to $12.6 million compared to $10.0 million last year, due to higher subcontractor costs incurred
Total operating expenses decreased from $10.4 million in 2Q17 to $9.7 million in 2Q18 mainly due to lower payroll and staff related costs.
Administrative expenses were 8.0% lower at $7.79 million from $8.46 million in the previous year.
During the quarter the group did not record profits from share of results of joint venture, compared to $80,000 which was recorded last year.
On the outlook, the group expects the oil and gas industry to remain weak, while recovery is also expected to be slow.
The group will continue to judiciously control operating cost and capital investments.
Shares in Hai Leck closed at 57 cents flat on Monday.
