Boustead H1 profit down 10% at S$31.5 million despite revenue increase
Company attributes drop in earnings to lower gross profit margin and higher effective income tax rate
Boustead Singapore, an engineering and technology group, reported a 10% drop in its net profit to S$31.5 million for the first half of the year, despite a 38% rise in revenue to S$406.6 million. The group's chairman and CEO Wong Fong Fui attributed the decline in earnings to a lower gross profit margin and a higher effective income tax rate.
Additionally, the reversal of share of net asset value due to dilution of Boustead Projects' shareholdings in UIB Holdings' associate Boustead Projects resulted in a S$8.4 million loss. Earnings per share for H1 amounted to S$0.062, lower than S$0.071 in the previous period. Wong stated that the group had to navigate an uneven and complex global operating environment.
The company's engineering order backlog stands at S$720 million, with S$107 million from the energy engineering division and S$613 million from the real estate solutions division. Boustead Projects aims to derive 25 to 33% of its engineering and construction revenue from overseas markets within five years, expanding in Malaysia and Vietnam. The board declared an interim cash dividend of S$0.02 per share.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Boustead H1 profit down 10% at S$31.5 million despite revenue increase businesstimes.com.sg
