Monday, October 12, 2015

TEE International posts 78% rise in 1Q earnings to $2.8 mil

Property and engineering group TEE International has reported a 77.8% rise in 1Q earnings to $2.8 million from a year ago.

Revenue for the three months to August grew 44.2% to $61.1 due mainly to higher revenue recognised for on-going engineering projects during the quarter. Cost of sales increased by $16 million.

Gross profit increased by $2.7 million due mainly to higher revenue recognised and higher gross margin contributions from hotel operations and rental income from TEE Land.

At the end of 1Q, total unfulfilled order book stood at $377 million for its engineering business.

Currently, TEE International is involved in several notable ongoing projects at different development phases. These include Marina One Singapore, Changi Airport Group, Tampines Town Hub.

“As these ongoing projects move into their active phases, we will progressively recognise more revenue going forward,” says TEE International in its filing.

On the property front, TEE Land continues to remain cautious of the real-estate business outlook in Singapore and the markets it operates in.

Upon obtaining the Temporary Occupation Permits (TOP) for two projects, which have been sold in Singapore, TEE Land will further increase its share of results of associates in the next quarter. “We are mindful of the economic landscape and market volatility. As such, we will continue to be selective and prudent in pursuing good quality projects and investment opportunities in Singapore and the region,” says Deputy Group Managing Director Eric Phua.

TEE International last closed at 23 cents.

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