SINGAPORE (Feb 7): Hiap Seng Engineering posts earnings of $0.9 million in 3Q, 10.7% lower than earnings of $1.0 million recorded in the same quarter last year.
In a filing to SGX on Tuesday, Hiap Seng says this was mainly due to lower revenue recognition during the quarter.
Revenue in 3Q fell 34.2% to $33.0 million, compared to $50.1 million a year ago.
Hiap Seng recorded a currency exchange gain of $0.1 million in 3Q, compared to exchange loss of $0.1 million a year ago, on the back of the strengthening US dollar against the Singapore dollar.
As at Dec 31, 2016, cash and cash equivalents stood at $8.5 million.
As at Feb 7, 2017, Hiap Seng’s outstanding order book stands at $104 million.
“While our revenue levels are to an extent dependent on the phases of completion of our construction and maintenance projects, we remain deeply committed to keeping a tight lid on costs,” says Hiap Seng Chairman and CEO Frankie Tan.
The Group says it remains “cautiously optimistic” of its performance for the current financial year ending Mar 31, 2017.
“Given that oil prices remain far below what was achieved in the last few years, the outlook of the oil-and-gas industry continues to be relatively tepid,” says Tan.
Shares of Hiap Seng Engineering close 0.1 cent lower at 14.7 cents on Tuesday.
