<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 5, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>PEC posts 16% fall in net profit despite 40% revenue surge
By TEH SHI NING
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RECENTLY-LISTED PEC Ltd yesterday reported a 16 per cent fall in net profit to $20.96 million for the full year ended June 30.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR DOMPELING
Investments in oil and gas projects in markets we operate in have largely continued and remain active</TD></TR></TBODY></TABLE>The fall in profit attributable to shareholders was despite a 40 per cent surge in revenue to $440.5 million.
The results were the first to be released by the homegrown plant and terminal engineering specialist since its listing last month. PEC, the first mainboard listing this year, drew strong interest from the stock market. Its initial public offering (IPO) was nine times subscribed, and on its trading debut, its share price closed 80 per cent up at 72 cents.
The group said yesterday that the year's revenue increase came largely from contributions of $132.8 million from project works in the Middle East and Singapore, which was partly offset by a $7.2 million fall in revenue contributions from lower maintenance activities.
While gross profit rose 13 per cent to $91.4 million for the year ended June 30, in line with the revenue increase, net profit fell. PEC said that this decline was due to lower contributions from projects which had higher margins, and a rise in expenses caused by delayed project work.
The group's order book for ongoing projects stood at about $150 million on Aug 31. PEC said that it believes there are opportunities for new projects which it will explore.
The group added that its ongoing long-term maintenance contracts with a number of key customers in the oil, petrochemical and pharmaceutical industries will provide a steady and positive contribution to its revenue and income.
Earnings per share fell to 12 cents from FY2008's 14.3 cents. The group's net asset value per share rose to 60 cents on June 30, from 54.4 cents a year ago.
'Cash position of PEC remained robust with $52.4 million of cash and cash equivalents as at June 30,' PEC said. 'After adjusting the FY2009 interim dividend declared on June 25, the cash and cash equivalent will amount to $44.4 million.' The group, which raised some $26 million in net proceeds from its IPO, said its gearing remains negligible.
PEC's group CEO Robert Dompeling was optimistic about its prospects, saying: 'With the improving economic environment, we have observed that investments in oil and gas projects in markets we operate in have largely continued and remain active. We are also seeing sustained growth in demand for oil and chemical, as well as clean fuel products, which bodes well for us.'
Its long-term prospects are thus promising, but the group cautioned that the operating environment for the year ahead remains challenging, and that pricing pressures may affect its margins and operating results. The group still expects to remain profitable in FY2010.
PEC closed 2.5 cents lower at 88 cents a share yesterday.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>PEC posts 16% fall in net profit despite 40% revenue surge
By TEH SHI NING
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>RECENTLY-LISTED PEC Ltd yesterday reported a 16 per cent fall in net profit to $20.96 million for the full year ended June 30.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>MR DOMPELINGInvestments in oil and gas projects in markets we operate in have largely continued and remain active</TD></TR></TBODY></TABLE>The fall in profit attributable to shareholders was despite a 40 per cent surge in revenue to $440.5 million.
The results were the first to be released by the homegrown plant and terminal engineering specialist since its listing last month. PEC, the first mainboard listing this year, drew strong interest from the stock market. Its initial public offering (IPO) was nine times subscribed, and on its trading debut, its share price closed 80 per cent up at 72 cents.
The group said yesterday that the year's revenue increase came largely from contributions of $132.8 million from project works in the Middle East and Singapore, which was partly offset by a $7.2 million fall in revenue contributions from lower maintenance activities.
While gross profit rose 13 per cent to $91.4 million for the year ended June 30, in line with the revenue increase, net profit fell. PEC said that this decline was due to lower contributions from projects which had higher margins, and a rise in expenses caused by delayed project work.
The group's order book for ongoing projects stood at about $150 million on Aug 31. PEC said that it believes there are opportunities for new projects which it will explore.
The group added that its ongoing long-term maintenance contracts with a number of key customers in the oil, petrochemical and pharmaceutical industries will provide a steady and positive contribution to its revenue and income.
Earnings per share fell to 12 cents from FY2008's 14.3 cents. The group's net asset value per share rose to 60 cents on June 30, from 54.4 cents a year ago.
'Cash position of PEC remained robust with $52.4 million of cash and cash equivalents as at June 30,' PEC said. 'After adjusting the FY2009 interim dividend declared on June 25, the cash and cash equivalent will amount to $44.4 million.' The group, which raised some $26 million in net proceeds from its IPO, said its gearing remains negligible.
PEC's group CEO Robert Dompeling was optimistic about its prospects, saying: 'With the improving economic environment, we have observed that investments in oil and gas projects in markets we operate in have largely continued and remain active. We are also seeing sustained growth in demand for oil and chemical, as well as clean fuel products, which bodes well for us.'
Its long-term prospects are thus promising, but the group cautioned that the operating environment for the year ahead remains challenging, and that pricing pressures may affect its margins and operating results. The group still expects to remain profitable in FY2010.
PEC closed 2.5 cents lower at 88 cents a share yesterday.
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