SINGAPORE (May 16): Structural steel contractor and specialist civil engineering solutions provider Yongnam Holdings has secured five contracts in Singapore, Hong Kong and India worth a total of $120.8 million.
The contracts are expected to provide a significant boost to Yongnam’s order book, which stood at $327 million as at Mar 31, 2019.
Three of the contracts are for specialist civil engineering works for infrastructure developments in Singapore and Hong Kong, while the remaining two contracts are for structural steelwork at a factory in Singapore and the Kempegowda International Airport Terminal 2 in Bangalore, India.
The contracts are scheduled to commence in 2H19, and expected to be completed progressively over 36 months.
Yongnam says the contracts are expected to have a positive impact on the group’s financial performance for the year ending Dec 31, 2019.
For the 1Q19 ended March, Yongnam sank deeper into the red with a net loss of $6.9 million, as revenue fell 5.5% to $51.1 million.
The decline was in line with lower overall sales and business activities due to the substantial completion of projects in end-FY18.
See: Yongnam sinks deeper into the red in 1Q on completion of major projects
“Our recent project wins are testament to Yongnam’s reputation in delivering quality projects for our customers,” says Yongnam CEO Seow Soon Yong.
“Through the continuous delivery of our quality services, we continue to strengthen our working relationship with both new and existing customers in order to secure repeat contracts,” he adds.
Shares in Yongnam closed 5.0% higher at 16.9 cents on Thursday, before the announcement of the latest contract wins.
