Hock Lian Seng (SGX:J2T
) warns that it will report an operating loss for 1HFY2026 ended June 30, compared with an unaudited profit before tax of $10.0 million for the corresponding period in 1HFY2025.
Hock Lian Seng explains that the operating loss was mainly due to higher operating costs in the civil engineering segment.
“The increase was driven by higher-than-anticipated project costs, including concrete, steel, manpower, transportation and subcontractors’ cost. In addition, the ongoing geopolitical tensions in the Persian Gulf contributed to higher oil prices, which further increased operating costs,” the company adds.
As a result of the operating loss, Hock Lian Seng expects its financial performance for FY2026 ended Dec 31 to be negatively affected.
Hock Lian Seng will be releasing its unaudited financial statements for 1HFY2026 before mid-August.
Shares of Hock Lian Seng closed flat at 34.5 cents on July 8.
