SINGAPORE (Nov 14): Rotary Engineering, which is in the process of being privatised, reported a 29% increase in 3Q17 earnings to $1.58 million compared to $1.23 million in 3Q16.
Revenue for the quarter was up by 43% to $75.2 million from $52.6 million in the previous year, due to newly secured projects being executed in 2017.
Similarly, cost of sales increased by 57% to $61.4 million from $39.1 million a year ago.
As a result, gross profit for 3Q17 stood at $13.9 million, 2.2% higher than $13.6 million recorded in 3Q16.
Other income was 60% lower at $202,000 from $509,000 last year.
In 3Q17, the group recorded a loss in foreign exchange difference of $801,000 compared to a gain of $977,000 in the same period last year, due mainly to the depreciation of USD against SGD.
General and administrative costs decreased 11% to $9.54 million from $10.7 million last year, due to higher professional fees incurred.
Other operating costs declined by 29% to $2.36 million from $3.32 million a year ago, due to decline in depreciation expense as certain fixed assets were disposed in the prior year.
In this quarter, the group recorded income tax expense of $380,000 compared to income tax credit of $6,000 last year.
As at Sept 30, the group’s order book, excluding maintenance, stood at $474.8 million.
On Oct 2, the group announced that it has received a 46 cents offer to privatise the company from its controlling shareholder, the Chia family group, together with an investment arm of the Oman government.
The offerer is Orochem, a 64.7%-owned company by Chia SPV and 35.3% owned by Oman Investment Fund.
See: Rotary Engineering gets 46 cents/share offer from controlling shareholder to delist company
Rotary Engineering says it has submitted its delisting application, which is subject to approval from the Singapore Exchange.
Amidst continued uncertainty in the global economy, the group’s liquid storage terminal engineering, procurement, and construction (EPC) business environment continues to remain challenging.
Shares in Rotary Engineering closed at 45 cents on Tuesday.
