SINGAPORE (Feb 12): Construction and engineering group Ley Choon saw 3Q18 earnings fall 96.2% to $0.3 million from $8.8 million in 3Q17, mainly due to the absence of a gain on disposal of its office building which was recorded in the same period a year ago.
Revenue for the quarter fell by 4.4% to $26.4 million from $27.6 million previously, due largely to a decrease in revenue from the group’s oil and gas (O&G) projects as well as roadwork projects, which were completed.
The lower contributions from these projects were offset in part by higher revenue from a small pipe diversion project and distribution cable projects during the period.
In particular, other income fell 96.2% to $0.3 million from $9 million a year ago, due to the absence of gain on disposal of Ley Choon’s office building at No. 55 Kranji Crescent in 3Q17.
Over the quarter, finance costs grew 69.2% to $0.7 million from $0.4 million previously due to the absence of reversal of over-accrued finance costs in the current period.
With the latest quarterly results, Ley Choon’s earnings for the nine months ended Dec 2017 stood at $1.3 million, down 90.4% from $14.1 million in 9M17.
As at end-Dec 2017, cash and cash equivalents were $6.3 million compared to $0.4 million as at end-2016.
The group’s unfulfilled order book to-date based on secured contracts stands at approximately $155 million.
Citing Building & Construction Authority (BCA) projection data in its outlook, Ley Choon says it expects the public sector construction demand to grow this year on the back of steadily improving construction demand, which is to be supported by major infrastructure projects such as the development of Changi Airport Terminal 5 and land transport projects.
Shares in Ley Choon closed flat at 3.8 cents on Monday.
