Wednesday, May 25, 2016

Boustead records 55% fall in FY16 earnings

Boustead Singapore, the infrastructure-related engineering services and geo-spatial technology group, reported last night a 55% fall in FY16 earnings to $28.2 million from a year ago. This came on the back of a 13% fall in revenue to $486.7 million.

Boustead says demerged Boustead Projects, in which 48.8% of Boustead Projects’ shares were distributed as a dividend in specie on April 30, 2015, resulted in a significant rise in profit attributable to non-controlling interests.

FY16 net profit of $28.2 million was 55% lower than FY2015. If net profit for FY15 had been adjusted to take into account the demerger and other gains and losses, then FY16 net profit would be 38% lower year-on-year.

At the Energy-Related Engineering Division, the heavily depressed state of the global oil & gas industries led to a sharp 33% year-on-year fall in revenue to $128.0 million.

The Real Estate Solutions Division (Boustead Projects) delivered revenue of $255.5 million, comparable to FY2015. The slight decrease in design-and-build revenue was compensated for with an increase in leasing revenue from an enlarged industrial leasehold portfolio.

At the Geo-Spatial Technology Division, revenue declined 7% year-on-year to $103.0 million, mainly due to significant depreciation of the division’s local operating currencies against USD.

For 4Q, earnings fell 77% to $4.1 million on the back of an 8% fall in revenue to $112.5 million.

The group’s order book backlog stands at $323 million as at end FY16 plus new orders since.

Boustead has proposed a final dividend of 2 cents per share. Together with the interim ordinary dividend paid of 1 cent per share, the total dividend for FY16 would be 3 cents per share.

At 9.45am, Boustead shares are down 3.8% at 76.5 cents.

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