SINGAPORE (Aug 3): Civil engineering group Hock Lian Seng earnings for 1H17 ended June declined to $2.5 million compared to $12.5 million in 1H16 on the absence of joint venture profits in the previous year.
Revenue for the six months ended June was down 7% at $51.2 million from $55.2 million a year ago, due to the lower billing of current ongoing projects in 2Q as well as the fact that contributions from its new Changi Airport JV has yet to register at a significant scale.
Furthermore, there was no contribution from the property development segment and the revenue from the investment property segment remained insignificant, says the group.
Notably, there was also no share of profits from the JV as residential project profits had already been fully recognised in the previous years, says the group. This was partially offset by the higher gross profit from civil engineering projects.
Hock Lian Seng’s order book for on-going projects for the civil engineering segment stood at $890 million as at end June, while its construction of its new industrial development property at Tuas, Shine @ Tuas South, has commenced and is expected to complete in 2018.
Looking ahead, the group’s management says it will continue to tender for infrastructure projects competitively and explore other business opportunities in the property related segment to enhance shareholders’ value.
Shares in Hock Lian Seng closed 1% lower at 50 cents on Thursday.
