SINGAPORE (Feb 22): Rotary Engineering, the oil & gas engineering, procurement, construction and maintenance services provider, reported earnings of $11.4 million for FY16, down 73% from a year ago.
Revenue for the 4Q ended Dec fell 29% to $0.23 million as the group reaches completion on major projects. The order book was replenished with the securing of smaller, single discipline projects from an expanded customer base, and stood at $152.6 million, excluding maintenance services contracts. Gross profit margin was maintained at 24%.
The group’s financial position remains strong with cash and short-term deposits of $86.0 million, a current ratio of 1.4 and a net cash position of $64.8 million as at Dec 31 2016.
In its outlook, Rotary said the group’s liquid storage terminal EPC business environment remains challenging due to continued global economic and financial uncertainties despite indications of a recovery in the oil price.
Shares of Rotary closed 2 cents higher at 39 cents.
