[SINGAPORE] Steel solutions provider BRC Asia reported on Tuesday (May 13) a 9 per cent year-on-year increase in net profit for the first half of the year to S$42.1 million, from S$38.5 million in the year-ago period.
Revenue fell 6 per cent to S$715.6 million from S$758.3 million in the year before.
“While the construction sector continues to recover on the back of sustained public and private sector activities, short-term headwinds persist due to lower-than-expected project offtake volumes arising from construction challenges and bottlenecks such as engineering services,” said BRC Asia.
The decline in revenue comes amid a broad-based softness in steel prices, but delivery tonnage remains stable, reflecting continued demand and the group’s ability to maintain its market share amid volatility, the mainboard-listed company added.
On a per-share basis, earnings rose to S$0.1533, from S$0.1404 in H1 FY2024.
The board is proposing an interim dividend of S$0.06, unchanged from a year earlier.
Looking ahead, the group said that Singapore’s construction industry remains resilient and stable despite a subdued economic outlook amid rising global geopolitical tensions.
The medium-term demand for construction is forecasted to average between S$39 billion and S$46 billion annually, according to the Building and Construction Authority (BCA).
Shares of BRC Asia closed flat at S$3.11 on Tuesday.
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