ENGINEERING company PEC posted a net profit of S$10.8 million in the second half of its 2024 fiscal year ended Jun 30, almost trebling its earnings of S$3.9 million for the period in the year before.
However, its revenue fell 15 per cent to S$204 million from S$240 million over the period, going by its latest financial results released on Wednesday (Aug 28) in a bourse filing.
Earnings per share for the second half of FY2024 stood at 4.3 Singapore cents, an improvement from 1.5 cents a year ago.
For the full fiscal year, net profit rose 136 per cent to S$16 million from S$6.8 million the year before.
Revenue rose to S$491 million, a 14 per cent increase from S$430.9 million in the previous financial year.
Earnings per share for the full year came in at 6.3 Singapore cents, compared to 2.7 cents in FY2023.
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PEC has recommended an ordinary dividend of 2 cents per share, as well as a special dividend of 1.5 cents per share for the full year.
The better performance in FY2024 came mainly from an increase in project and maintenance works from overseas, noted PEC in its financial statement.
As for its outlook, PEC said that the increased focus on clean energy and sustainability are expected to make an impact on Singapore’s traditional role as a refining and petrochemical hub, given a diminishing pipeline of projects in the near term and the resulting intensified competition.
Adding to the pressure is a shortage of engineers and tighter regulations on foreign manpower in Singapore, with the government imposing strict quotas and higher levies.
The company is actively bidding for projects and maintenance works in the Middle East, a region it recognises as a growing market. The strategic investments there, in both conventional and alternative-energy sources, could translate into sustained demand for engineering, procurement and construction services and modular projects.
It added in its statement: “The group will continue to invest in its workforce and improve its cost and operating efficiency. We will also continue to deploy digitalisation solutions, enhance our capabilities and build up our track record in the modular and clean-energy businesses.”
As at Jun 30, its order book stood at S$52.5 million, excluding maintenance contracts.
Shares of PEC rose 4.9 per cent, or S$0.025, to close at S$0.535 on Wednesday.
