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Lian Beng's Q3 net profit down 5.3%
LIAN Beng's net profit for the third quarter ended Feb 29, 2016, dipped 5.3 per cent to S$17.4 million, from S$18.4 million in the year-ago period. Revenue dived 49.8 per cent to S$101.6 million, from S$202.3 million.
For the nine months ended Feb 29, net profit rose 34.7 per cent to S$72.6 million, from S$53.9 million. Revenue dropped 35.6 per cent to S$367.2 million, from S$569.9 million.
In Q3 FY2016, the group secured a S$117.6 million construction contract to build an industrial building project, T-Space, at Tampines North Drive 1. With this new project, the group's order book increased to S$384.5 million as at Feb 29. This is expected to provide the group with a sustainable flow of activities through FY2019, said Lian Beng.
The group's 40 per cent owned joint venture, United E&P Pte Ltd, also secured a S$176.3 million civil engineering subcontract for asphalt pavement works.
The construction of 49 per cent-owned Westlite Papan dormitory is completing soon, and the facility is expected to commence operation in mid-2016. This new dormitory, when in operation, will contribute to the group's share of associates' profit in a recurring manner.
Looking ahead, Lian Beng said it expects the construction industry to remain challenging with labour cost remaining high. The group will continue to leverage its established track record and reputation, and proven capability to tender for more projects, it said.