SINGAPORE (Aug 28): Hai Leck today announced that its earnings dropped 37.8% to $7.9 million for the full year ended June, from $12.8 million a year ago.
This was mainly due to higher cost of sales and lower other income.
Cost of sales rose 14.1% to $60.5 million in FY17, from $53.0 million a year ago.
The increase was mainly due to provision for foreseeable losses of $2.8 million in respect of an on-going project due to additional resources required to complete the project, as well as higher manpower costs and warranty provision.
Other income fell 62.3% to $964,000 in FY17, from $2.6 million a year ago.
This was mainly due the absence of the write back of allowance for doubtful debts of $1.4 million which was recorded in FY16.
In line with the higher level of activities reported in FY17, the group posted operating expenses of $41.5 million, a 5.1% increase compared to $39.5 million in FY16.
The group’s FY17 revenue saw a 5.0% increase to $109.3 million, compared to $104.1 million in FY16.
This was mainly attributed to higher maintenance revenue in 1Q17 and higher project revenue in 3Q17.
As at end June, cash and cash equivalents stood at $52.2 million.
Looking ahead, the group says the outlook of oil and gas industry remains uncertain, and it will continue to monitor and manage its costs to remain competitive.
Shares in Hai Leck last closed at 54 cents on Aug 25.
