The strong performance of Boustead Singapore’s real estate division boosted its Q2 earnings by 13 percent amid the unfavorable forex movement and challenging business conditions.
The infrastructure and engineering specialist posted $10.8 million profit for the quarter that ended on September 30 2009, compared to its profit of $9.5 million in 2008. This transpired despite the 12.7 percent decline in revenue to $114.3 million.
The results translated into H1 earnings of $20.2 million, a 33.4 percent increase from the previous year’s $15.2 million. The group’s revenue came to $233.2 million, up by 10.8 percent from last year.
As of September, the group had an order book in excess of $450 million and a net cash of $163.4 million.
It declared a 1.5-cent interim dividend.
The property solutions division remained the leading performer during the quarter, and generated revenue of $61.8 million, up by 7.7 percent year-on-year. The strong performance of the division was driven by the improving revenue of the new township business in Libya, where the group is building a township with 1,164 villas, as well as the stable progress of its industrial real estate solutions business. The unit is expected to continue securing a number of projects in Singapore and overseas.
The first-half financial results of the group were already expected given the generally tough operating environment, said Chairman and CEO Wong Fong Fui.
“Still, it was pleasing to see net profit growth of 33.4 per cent for the first half. Nonetheless, it is highly unlikely that we will be able to exceed our full-year record performance in FY2009, given that it is improbable that we will be able to unlock the value of any industrial leasehold facilities in FY2010.”