SINGAPORE (July 31): Soilbuild Construction Group saw its net profit fall 70.3% to $649,000 for the second quarter ended June, from $2.2 million a year ago.
Group revenue fell 54.1% to $48.3 million in 2Q, from $105.3 million a year ago.
This was mainly due to the completion of various projects in Singapore, while newly secured projects have just started to contribute revenue in the current quarter.
These include the Bedok Food City Project and 164 Kallang Way Project in Singapore, which are only expected to contribute to group revenue starting from the second half of this year.
In Myanmar, Soildbuild Construction saw revenue increase to $5.3 million, from $0.3 million a year ago.
As at June 30, 2017, the group's order book stands at $521.4 million. This comprises $336.8 million from Singapore construction projects and $184.6 million from Myanmar construction projects.
Cash and cash equivalents stood at $29.9 million as at June 30, 2017.
“The demand for construction activities in the local market has remained slow. Nevertheless, this was buffered by an increase in the group’s construction activities in Myanmar as continued efforts to grow the Myanmar operations bear fruits,” says Soilbuild Construction executive director Ho Toon Bah.
“We expect increased contribution from the operations in Myanmar in tandem with the construction progress, and will continue to participate in more tenders in Myanmar to lift our order book,” Ho adds.
Shares of Soilbuild Construction closed half a cent lower at 20.5 cents on Monday.
