SINGAPORE (Nov 6): Hock Lian Seng, the construction company which focuses on infrastructure projects, reported a 54.1% fall in 9M earnings to $8.5 million from a year ago on lower other income and absence of results of joint venture.
This came despite an 18.6% rise in 9M revenue to $100.6 million mainly contributed from the Changi Airport JV project.
There was no contribution from the Property Development and revenue from Investment property segment remained insignificant.
Gross profit increased by 15% to $11.0 million for the current financial period mainly due to higher revenue.
Other income fell 24.1% to $2.8 million.
Administrative expenses stood at $3.5 million, marginally lower than the same period last year mainly due to lower performance bonus provision offset by the higher staff costs and share of administration costs of the Changi Airport JV project.
There was also no share of profits from the joint venture as residential project has been fully recognised in previous years.
As at Sept 30, the group’s order book for on-going projects of civil engineering segment was $830 million for the Maxwell station, the two Changi Airport projects and Stabling at Gali Batu Depot.
The construction of the group’s new industrial development property at Tuas (Shine@Tuas South) has started and is expected to be completed in second quarter of 2018.
Nanagement says it will continue to tender for infrastructure projects competitively and explore other business opportunities in property related segment to enhance the shareholders’ value.
Shares in Hock Lian Seng closed at 50 cents on Monday.
