SINGAPORE (Nov 13): Hiap Seng Engineering announced that it has made a loss of $3.6 million in 2Q18, compared to earnings of $871,000 in 2Q17.
Revenue for the second quarter ended September came in at $30.5 million, 40.3% less than $51.1 million recorded in the same period last year, mainly due to lower recognition of plant construction revenue in the quarter.
In line with the decrease in revenue, cost of sales was down 33.1% to $31.2 million from $46.5 million a year ago.
This resulted in a gross loss of $641,000 for 2Q18, compared to gross profit of $4.6 million a year ago, mainly due to the lower revenue and higher than expected operating costs.
However, other gain for the quarter was up about 153% to $1.14 million from $0.45 million in the previous year.
Administrative costs dropped 5.6% to $4.23 million from $4.48 million last year.
Finance costs were up 87.1% to $58,000 from $31,000 a year ago.
In 2Q18, the group made a loss in foreign currency translation of $817,000 compared to a gain of $336,000 in 2Q17.
As at Sept 30, the group’s cash and cash equivalents stood at $6.7 million.
Frankie Tan, executive chairman of Hiap Seng, says, “We will continue to focus on managing projects and production costs more effectively to ensure sustainable operating performance. At the same time, we will continue to seek suitable opportunities in the region where the Group has established a strong track record, as well as in new markets. ”
Shares in Hiap Seng closed 14 cents on Monday,
