SINGAPORE (Feb 28): Yongnam Holdings, the engineering and construction services provider, reported FY18 loss widened to $51 million from $17 million a year ago due to lower revenue across all segments.
In the group’s results announcement on Thursday, Yongnam notes that its bottomline was further impacted by provisions made in anticipation of lower negotiated variation orders for two structural steelworks projects, and lower margins for Thomson MRT projects.
Continued low levels of strutting and fabrication activities in Singapore and Hong Kong also resulted in overhead costs not being fully absorbed, it adds.
Revenue for the full year was halved to $161.4 million from $306.7 million in FY17, as contributions from the Structural Steelworks segment fell in the absence of the completion of Senoko Food Hub and Jewel Changi Airport at end-FY17.
Specialist Civil Engineering also registered lower revenue compared to a year ago due to lower contributions from the Thomson MRT project as well as the completion of certain MTR projects in Hong Kong.
Meanwhile, revenue from Design and Build projects fell after the substantial completion of a project of light industrial developments at Kallang Junction in Singapore at end-FY17.
Singapore continued to be the core contributor to the group’s FY18 revenue on a geographical basis, accounting for 76.4% of total revenue compared to 88.1% in FY17.
As at end Dec 2018, cash and cash equivalents stood at $14.3 million, up from $10.2 million a year ago, while order book stood at $366 million compared to $152 million in FY17.
In its outlook, Yongnam says it is actively pursuing $1.7 billion worth of new infrastructure and commercial projects in Singapore, Hong Kong, Australia, the Philippines and India. Should they be successfully awarded, the group expects these projects to make an impact from 2H19.
The group is also anticipating public sector demand in Singapore to be supported by upcoming mega infrastructure projects such as the Jurong Regional Line, Cross Island Line, and various infrastructure works for Changi Airport Terminal 5.
Shares in Yongnam closed 1.14% lower at 17 cents on Thursday.
