SINGAPORE (Feb 26): Soilbuild Construction Group reversed into net losses of $3.2 million and $6.3 million for the 4Q17 and FY17 respectively. This came on the back of lower revenue recognised in 4Q17 and FY17, coupled with the increase in construction costs for certain projects arising from cost overruns and extended construction period.
Revenue in 4Q fell 56.1% to $39.3 million while revenue in FY17 fell by nearly half to $200.8 million mainly due to decrease in revenue contributions from its major projects in Singapore which have either been completed in FY16 and FY17 or have been progressing towards completion during 4Q17.
Revenue contributed by newly secured projects in Singapore, namely Bedok Food City Project, 164 and 171 Kallang Way Projects in 4Q17 were not significant as they are still at their initial construction phase.
The group’s revenue from construction projects in Myanmar increased by 62.9% and 86% respectively in 4Q17 and FY17 when compared to the same period last year.
As at dec 31, Soilbuild's order book totalled $451.9 million, of which $276.0 million comprise order book from local construction projects, while $175.9 million comprise order book from Myanmar construction projects.
Executive Director Ho Toon Bah says, "The continued decline in the local construction sector has put further pressure on the highly competitive tenders for new projects, meanwhile, our Myanmar business has continued to show good momentum. The Group will focus on productivity to enhance its competitiveness and will participate in more tenders in Myanmar going forward."
Shares in Soilbuild closed at 17 cents on Monday.
