SINGAPORE (May 15): Koh Brothers Eco Engineering (KBE) reported 1Q18 earnings fell by 74% to $0.36 million, compared to $1.40 million in 1Q17.
Revenue for the first quarter ended March came in at $52.8 million, 25% lower than $70.6 million a year ago, mainly due to a decline in revenue contribution from the Engineering and Construction division following the completion of certain projects.
In line with lower revenue, the group’s gross profit was $3.02 million, 16% lower than $3.59 million last year.
During the quarter, the group recorded gains of $0.48 million from currency translation differences arising from consolidation, compared to a loss of $0.54 million in the previous year.
As at end-1Q18, the group’s cash and bank balances stood at $19.1 million.
Francis Koh, chairman of KBE, says, “As at the end of Mar 2018, the group’s construction order book stood at a high of $915.9 million. Over the past eight months, we have secured three major projects – the Woodlands Health Campus ($192.0 million), Deep Tunnel Sewerage System Phase 2 ($182.0 million) and Circle Line 6 ($225.4 million). Our share of these contracts amounted to a total of $599.4 million, thus reflecting our commitment and competitive edge to capture opportunities amid a challenging operating environment.”
“Moving forward, as we deliver the projects under our construction order book progressively, we will remain vigilant in managing costs and yet adhering to safety practices and standards,” adds Koh.
Paul Shin, CEO of KBE, says, “In view of the improving outlook in the construction industry, driven by the public sector, we will continue to capitalise on our recently acquired construction and civil engineering capabilities together with our water treatment competencies to seize opportunities to boost our order book further.”
Shares in KBE closed at 7.8 cents on Tuesday.
