Soilbuild Construction Q2 profit slumps 70%, shares fall

Shares in Soilbuild Construction Group fell as much as 2.4 percent.

Soilbuild Construction
Soilbuild Construction website

Shares in Soilbuild Construction Group fell as much as 2.4 percent after the builder reported a 70 percent slump in second-quarter net profit due to lower revenue contributions from its major Singapore projects and increased investments.

Soilbuild Construction reported a net profit of S$0.6 million for the second quarter ended June 30 versus S$2.2 million in the corresponding period last year.

Revenue plunged 54 percent to S$48.3 million in the quarter.

Gross profit margin, however, increased to 5.4 percent in the second-quarter from 4.5 percent last year due to higher revenue recognised for projects in Myanmar.

The Group recognised about S$5.3 million revenue from the projects in Myanmar, as compared with S$0.3 million last year.

"We expect increased contribution from the operations in Myanmar in tandem with the construction progress, and will continue to participate in more tenders in Myanmar to lift our order book," Executive Director of Soilbuild Construction Group Ho Toon Bah said in a statement.

Its newly secured projects in Singapore, namely Bedok Food City Project and 164 Kallang Way Project are expected to commence revenue contribution to the Group only in the second half of financial year 2017.

The Group's order book stood at S$521.4 million as at 30 June 2017.

It did not declare dividends for the period.