SINGAPORE (Aug 8): Rotary Engineering reported 2Q17 earnings of $1.2 million, or a 43% decline from the $2 million reported in 2Q16 when profits were higher as the group reached completion on major projects.
Revenue for the quarter grew 21% on-year to $62.8 million from $51.8 million previously, due to contributions from newly-secured projects which were executed in the quarter.
Other income however declined 40% to $0.5 million from $0.8 million in 2Q16 due to lower sale of scrap, which was offset by government grants.
Over the quarter, the group also recognised a net foreign exchange loss of $0.3 million due to a weaker US dollar against the SGD as at its balance sheet date. This was partially offset by an exchange gain of $0.1 million against foreign currency contracts.
For the half year, earnings rose 89% to $4.9 million in 2H17 from $2.6 million in 2H16, which brings earnings per share (EPS) to 0.9 cent from 0.5 cent.
Net asset value (NAV) grew slightly to 28.5 cents as at end June from 28.3 cents per share as at end 2016.
“The business environment remains challenging due to continued global economic and financial uncertainties. With a productivity-driven approach to operations, a skilled workforce, and prudent financial management, we are stepping up to embrace the challenging business environment,” says Roger Chia, chairman and managing director of the group.
Shares of Rotary Engineering closed flat at 36 cents on Tuesday.
