SINGAPORE (Feb 4): Koh Brothers Eco Engineering posted 4Q18 earnings of $2 million, down by more than half from its earnings of $4.5 million a year ago due to lower segment profit margins.
Revenue for the quarter grew marginally y-o-y to $114.8 million from $114.4 million in 4Q17 with higher revenue contributions from the Bio-Refinery and Bio-Energy division.
In line with the increase in revenue, cost of sales grew to $111 million from $105.7 million in the previous year.
The latest set of results brings Koh Brothers Eco’ FY18 earnings to $5.6 million, representing a 31% y-o-y decline from FY17 earnings of $8.1 million on the back of lower profit margins from both the Engineering and Construction as well as Bio-Refinery and Bio-Energy divisions.
Revenue for the full year fell to $328.8 million from $331.1 million in FY17, mainly due to lower overall revenue contributions from the Engineering and Construction division while the Bio-Refinery and Bio-Energy division remained steady with a $5.9 million increase in segment revenue in FY18.
The group’s earnings per share (EPS) came to 0.47 cent for FY18 as compared to its restated EPS of 0.91 cent in FY17.
Net asset value (NAV) per share was 5.78 cents for FY18, down from 6.02 cents a year ago.
Looking ahead, Paul Shin, CEO of Koh Brothers Eco, says the group will continue to be supported by its strong construction order book of $682.8 million as at end-2018, as well as its pipeline of major construction projects, namely Woodlands Health Campus, Deep Tunnel Sewerage System Phase 2 and Circle Line 6.
“We remain cautiously optimistic of our outlook given the Building & Construction Authority’s (BCA) steady projected construction demand this year, while we continue to leverage on our capabilities and niche expertise to secure future projects to add on to our order book,” says Shin.
