Revenue for the period is 20% lower year on year at S$295.2 million

INFRASTRUCTURE-RELATED engineering and technology group Boustead Singapore : F9D -0.96% posted a 34 per cent rise in net profit to S$36 million for its first half of FY2025 ended Sep 30, 2024.

 

The increase in net profit from S$26.9 million in the previous year was mainly due to higher gross profit and interest income, said the mainboard-listed company in a regulatory filing on Tuesday (Nov 12).

 

Among other key factors for the rise included a reversal of impairment loss, partially offset by other losses and larger overhead expenses, added the group.

Additionally, net profit was bolstered by increased average shareholding in its real estate solutions division, Boustead said.

 

Notably, Boustead Singapore&rsquo s revenue was 20 per cent lower year on year at S$295.2 million, compared with S$367.9 million in the previous corresponding period.

 

Overall revenue was mainly affected by decreased contributions from the energy engineering and real estate solutions divisions, said the group.

 

The results translated to earnings per share of S$0.075, up 33.9 per cent from S$0.056 in the corresponding year-ago period.

 

An interim dividend of S$0.015 per share was declared, unchanged from a year earlier. The dividend will be paid on Dec 2, after book closure on Nov 22.

 

Boustead Singapore&rsquo s real estate solutions arm saw revenue fall mainly due to decreased revenue recognition in light of the engineering and construction business&rsquo significantly lower order backlog carried forward at the end of FY2024, compared to a year prior.

 

Business conditions in the first half of this financial year continue to remain &ldquo extremely challenging&rdquo , the group noted.

 

The energy engineering division&rsquo s lower revenue was also largely due to decreased revenue recognition from a lower order backlog carried forward.

 

Global energy prices have tapered and business development activities have moved at a &ldquo slightly slower pace&rdquo as compared to the year prior, said the group. It attributed its muted order intake for the period to unfavourable market demand for oil and gas projects.

 

Meanwhile, revenue from the healthcare division was boosted by a single turnkey contract under a non-core business line, added the group.

 

Its geospatial division also saw higher revenue on the back of continued stable demand for geospatial technology and smart mapping capabilities in the region.

 

Said Boustead Singapore&rsquo s chairman and group chief executive officer, Wong Fong Fui: &ldquo As we navigate through the present challenges and adversities, our healthy balance sheet and solid business fundamentals will pull us through the troughs of business cycles.&rdquo

Mainboard-listed Boustead Singapore F9D has secured a green loan of approximately $156 million from UOB for the ongoing redevelopment of its logistics warehouse at 36 Tuas Road. 

 

According to an Oct 17 release, the property is Singapore' s first logistics warehouse and the first building in the industrial real estate sector to attain both the Green Mark Platinum Super Low Energy and five badges awarded by the Building & Construction Authority (BCA), under the updated BCA Green Mark 2021. The five badges include: intelligence, health and wellbeing, resilience, maintenance and whole life carbon.

 

The five-year secured green loan falls under UOB&rsquo s sustainable finance framework for green building developers and owners and represents the third green loan Boustead has secured from UOB. 

 

Proceeds from the loan are expected to fund the ongoing redevelopment of the property into a multi-tenant logistics hub, owned by Boustead Real Estate Fund, which is set to be completed in early 2025.

 

Samuel Lim, managing director of Boustead Real Estate, says: &ldquo We are pleased to continue our green financing journey with UOB through this third loan and have secured a collective total of $343 million of secured green loans with the institution to date. Boustead Projects &rsquo commitment to integrating sustainability within our business remains steadfast and achieving Singapore&rsquo s first industrial Green Mark Platinum Super Low Energy enhances our portfolio of quality green projects in the industrial space.&rdquo

 

Following the group&rsquo s achievement of the award, Boustead says sustainability has &ldquo been integrated at the onset, from the design stage of the development&rdquo of the property. 

 

On completion, the property is expected to feature &ldquo best-in-class&rdquo energy-efficient features that is set to achieve up to an estimated 42.6% of energy savings through reducing air-conditioning and lighting consumption. 

 

The property will also include   a climatic responsive facade to reduce building heat gain, a high-efficiency air distribution system, a hybrid cooling system and solar power generation system to   minimise energy consumption.

 

Additionally, the group adds that the property will feature high floor loading, direct ramp access and &ldquo good&rdquo ceiling heights   to cater to contemporary supply chain and manufacturing operations.