Boustead Singapore F9D has posted earnings of $22.7 million for its 2HFY2023 ended March, up 145% y-o-y.
This is on higher gross profit, interest income, the real estate division’s sale of subsidiary Boustead Industrial Park to a joint venture in Vietnam and reversal of impairment loss.
After adjusting for other gains and losses, impairments as well as the job support scheme, all net of non-controlling interests, the net profit for 2HFY2023 would have been 34% higher y-o-y.
For the full year, the company reported earnings of $45.3 million, up 48% y-o-y. Overall revenue for the year, however, declined by 11% y-o-y at $561.6 million due to decreased revenue contributions from its energy engineering and real estate divisions.
For FY2023, Boustead Singapore’s energy engineering division revenue was 13% lower y-o-y at $98 million. The real estate division’s revenue was 16% lower y-o-y at $284 million while its geospatial division revenue remained stable y-o-y at $168 million. Lastly, the healthcare division’s revenue was 7% lower y-o-y at $11.1 million.
During its FY2023, Boustead Singapore was awarded approximately $565 million in new contracts including a record contract secured by its real estate division valued at approximately $300 million.
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The pipeline of new contracts secured in FY2023 has boosted its engineering project order backlog to $556 million, of which $154 million is under the energy engineering division and S$402 million is under the real estate division. The geospatial division also had $92 million in deferred services backlog at the end of FY2023.
The company has proposed a final dividend of 2.5 cents per share.
Boustead Singapore chairman and group CEO Wong Fong Fui says the company’s improved profitability in FY2023 is a promising sign that the worst of the pandemic is over. However, inflation, interest rates, volatile global economic conditions and geopolitics may continue to significantly impact overall business sentiments and reverse what has been achieved by the world in exiting the pandemic.
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“While our group has made a robust recovery in the past year by securing the highest amount of new contracts since the onset of the pandemic and marking the third-highest level in the past decade, we need to be prepared for more volatility and ensure our Group is strong enough to weather any storm,” he adds.
Shares in Boustead Singapore closed 1.5 cent higher or 1.88% up on May 26 at 81 cents.
