Pan-United Corporation P52 has reported earnings of $9.88 million for its 2HFY2022 ended December, down 16% compared to the previous corresponding period at $11.7 million.
For the full year, however, the company reports earnings of $23.4 million, 25% higher y-o-y. Excluding discontinued operations, earnings from continuing operations increased 42% y-o-y to $27.5 million in FY2022.
On Oct 14, Pan-United announced the proposed disposal of its entire 49% issued share capital in PT Pacific Granitama (PTPG), a limited liability company in the business of the mining, production, sale and export of aggregates and other materials in Indonesia. The transaction is currently in progress.
Revenue from Pan-United’s continuing operations in 2HFY2022 at $366 million is 18% higher y-o-y, while FY2022’s revenue grew 20% y-o-y to $703 million. This is primarily due to higher revenue from the company’s concrete and cement business.
The increase in revenue arose as a result of higher selling prices to cover higher costs of raw materials, subcontract costs and other direct costs during the year. An upswing in other expenses was also recorded on the back of higher energy costs.
Additionally, Pan-United’s staff costs increased 13% y-o-y in FY2022 due to ongoing manpower constraints and rising manpower costs in Singapore.
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Other income fell by 39% y-o-y to $3.4 million in FY2022, in light of reduced government grants from the Singapore government’s Covid-19 support schemes.
For FY2022, Pan-United’s ebitda was $48.6 million. Excluding discontinued operations, the company’s ebitda from continuing operations stood at $51.5 million in FY2022, a 23% growth y-o-y.
In its outlook statement, the company cites Building and Construction Authority’s projection that total construction demand in Singapore will reach between $27 billion and $32 billion in 2023 compared to the preliminary total construction demand of $29.8 billion for 2022.
BCA estimates that the volume of ready-mix concrete will reach between 11.5 million cubic metre and 12.5 million cubic metres in 2023, compared to 11.6 million cubic metres in 2022.
“The industry is expected to continue facing challenges from higher operating costs such as energy and manpower costs,” the company notes.
Shares in Pan-United traded 0.5 cents lower or 1.23% down on Feb 9 at 40 cents.
