INFRASTRUCTURE-RELATED engineering and technology group Boustead Singapore posted a 34 per cent rise in net profit to S$36 million for its first half of FY2025 ended Sep 30, 2024.
The increase in net profit from S$26.9 million in the previous year was mainly due to higher gross profit and interest income, said the mainboard-listed company in a regulatory filing on Tuesday (Nov 12).
Among other key factors for the rise included a reversal of impairment loss, partially offset by other losses and larger overhead expenses, added the group.
Additionally, net profit was bolstered by increased average shareholding in its real estate solutions division, Boustead said.
Notably, Boustead Singapore’s revenue was 20 per cent lower year on year at S$295.2 million, compared with S$367.9 million in the previous corresponding period.
Overall revenue was mainly affected by decreased contributions from the energy engineering and real estate solutions divisions, said the group.
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The results translated to earnings per share of S$0.075, up 33.9 per cent from S$0.056 in the corresponding year-ago period.
An interim dividend of S$0.015 per share was declared, unchanged from a year earlier. The dividend will be paid on Dec 2, after book closure on Nov 22.
Boustead Singapore’s real estate solutions arm saw revenue fall mainly due to decreased revenue recognition in light of the engineering and construction business’ significantly lower order backlog carried forward at the end of FY2024, compared to a year prior.
Business conditions in the first half of this financial year continue to remain “extremely challenging”, the group noted.
The energy engineering division’s lower revenue was also largely due to decreased revenue recognition from a lower order backlog carried forward.
Global energy prices have tapered and business development activities have moved at a “slightly slower pace” as compared to the year prior, said the group. It attributed its muted order intake for the period to unfavourable market demand for oil and gas projects.
Meanwhile, revenue from the healthcare division was boosted by a single turnkey contract under a non-core business line, added the group.
Its geospatial division also saw higher revenue on the back of continued stable demand for geospatial technology and smart mapping capabilities in the region.
Said Boustead Singapore’s chairman and group chief executive officer, Wong Fong Fui: “As we navigate through the present challenges and adversities, our healthy balance sheet and solid business fundamentals will pull us through the troughs of business cycles.”
Shares of Boustead Singapore closed at S$1.03 on Tuesday, down S$0.01 or 1 per cent.
