SINGAPORE (Feb 10): Pan United has reported earnings of $24.1 million for FY16, a marginal decrease from the earnings of $24.2 million in FY15.
For the year to December, revenue fell 12% to $704.3 million, as revenue from the concrete and cement (C&C) division fell 14% to $577.6 million, on the back of lower prices in ready mixed concrete (RMC) and cement.
However, the C&C segment continued to be profitable, with segmental earnings of $10.7 million.
The group’s ports division’s revenue remained stable at $91.9 million and segmental earnings rose 1% to $19.6 million.
Finance costs also fell 17% to $12.3 million due to cuts in China’s Public Bank of China interest rate in 2H15.
Pan United says that the demand for RMC is expected to fall from 14 million cubic metres to between 12 and 13.5 million cubic metres, while price pressures on RMC and cement are expected to continue.
However, the group remains cautiously optimistic given its track record and the mega projects it has secured like the LTA Thomson Eastern Line, the LTA Downtown Line 3, Outram Community Hospital and the Changi General Hospital Medical Centre.
The group declared a final dividend of 2.75 cents for the full year period.
Shares in Pan United closed at 61.5 cents on Thursday.
