CONSTRUCTION and property group United Engineers yesterday reported a net profit of $52.2 million for 2009, a significant jump from $6.0 million in 2008.
The company’s revenue rose 13 per cent to $703.7 million in 2009, from $624.6 million in 2008, mainly due to the progressive recognition of revenue from residential development projects The Rochester in one-north and Park Central @ AMK in Ang Mo Kio, as well as an engineering project for the Marina Bay Sands integrated resort.
Gross profit rose 12 per cent to $162.0 million in 2009 as revenue increased.
The bottom line was also boosted by a $6 million increase in ‘other income’ to $10.6 million, mainly due to fair value gains from the group’s short-term investments. It also recognised a surplus of $745,000 on the revaluation of investment properties, compared with a deficit of $570,000 in 2008.
Earnings per share was 22.1 cents compared with 2.7 cents in 2008.
But the main boost for the net profit came from a $32.7 million fall in ‘other expenses’ to $17.7 million mainly due to 2008’s provisions for the Fusionopolis project, a $9.3 million impairment charge on available-for-sale investments and $6.9 million fair value losses on short-term investments.
The group had cash and cash equivalents of some $308 million as at end-December 2009.
United Engineers said that it will continue to execute several large-scale building and infrastructure projects over the next 12 months.
But while existing projects will keep the company busy, it ‘will face stiffer competition in replenishing its order books due to the challenging environment brought about by the economic slowdown in Singapore and the countries it operates in’, United Engineers said.
The company’s stock gained 4 cents, or 2.1 per cent, to close at $1.99 yesterday.
Source: Business Times, 25 Feb 2010