Steel supplier BRC Asia has reported earnings of $20.4 million for its 3QFY2022 ended June 30, bringing its 9MFY2022 earnings to $60.2 million.
Revenue for 3QFY2022 was $515.3 million, and $1.31 billion for 9MFY2022, the company says, in a voluntary business update on Aug 2.
For the same quarter last year, the company had reported earnings of $10.2 million, and $29.3 million for 9MFY2021.
As of June 30, the company’s order book has reached some $1.135 billion, to be delivered over the next five years or so.
In its earnings commentary, BRC Asia warns that credit risks of the construction industry remain "elevated” given how interest rates are trending up and that government support for the pandemic has been cut back.
There are also higher costs the industry has to cope with, although international steel prices have “moderated” recently because of fluctuating conditions in China.
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“On the other hand, construction order books island-wide have remained robust on the back of strong demand for public housing and infrastructure projects as Singapore continues to emerge from the Covid-19 pandemic,” the company adds.
For example, the government is going ahead to launch up to 23,000 new flats this year, which will help support demand for reinforcing steel, which BRC supplies.
BRC Asia shares closed on Aug 2 at $1.68, unchanged for the day and up 9.09% year to date.
