Singapore-based Construction group Low Keng Huat has recorded a 9-percent decline in net profit in the third quarter, as construction revenue slipped.
Revenue for the third quarter dropped 70 percent to $61.5 million from $205 million in the previous year, while earnings fell to $15.2 million from $16.6 million over the same period last year.
“We remain cautious and will continue our efforts to search for new projects and businesses that will generate consistent revenue and profitability streams,” it said.
During the third quarter, Low Keng Huat won the public tender for the Upper Serangoon Road for about $155.2 million, and plans to build 630 HDB flats under the DBSS scheme. The company also secured a contract to renovate an office building at 6 Battery Road worth $62.5 million.
Construction revenue for the August-October period dropped 74.4 percent year-on-year to $48.6 million, attributed to completion of projects like Hard Rock Hotel at Sentosa and Meritus Mandarin Hotel.
This has affected the company’s nine-month turnover, which fell 48 percent to $233.2 million. However, earnings for the first nine months of the year rose 31 percent to $62.6 million, attributed to the “increased contributions from construction project nex at Serangoon Central Mall and decrease in accruals in completed projects, Meritus Mandarin Hotel and Hard Rock Hotel at Sentosa,” said Low Keng Huat.