BBR Holdings, which has a $520-million order book, has announced that its net earnings for the first quarter this year has increased 61.9 percent to $4.49 million.
“Based on our strong order book, coupled with our balance sheet strength and projected steady income streams, our profitability remains on track for fiscal 2010,” said BBR CEO Andrew Tan.
The company has projects in line until 2014, which comprises mostly of civil engineering and building contracts in both Singapore and Malaysia.
Despite a 47.3-percent year-on-year drop in revenue in the first quarter to $32.3 million, BBR’s Q1 results remained positive due to the improved margins from specialist engineering and general construction projects.
“Additionally, we have higher revenue contributions from specialist engineering projects which generally contribute higher profit margins,” said the company in a statement.
The lower company revenue was attributed to lower revenue recognition from the general construction projects. “Although the group was actively involved in the execution of general construction projects in Q1 2010, revenue had not been recognized for certain projects for work done because these projects have not achieved the minimum percentage of completion required for revenue recognition in accordance with the group’s accounting policy,” it said.
BBR’s share of results of associates increased to $3.1 million in Q1 from $1.8 million in the same period last year. This was mainly due to increased contribution from the project at 8 Nassim Hill. The company added that progress of constructions in its projects has accelerated and it is nearing completion.
Earnings per share in the first quarter also increased from 0.9 cent in Q1 2009 to 1.46 cents this year, while net asset value per share increased to 21.81 cents as of end-March 2010 from 20.29 cents at end-December last year.