BRC Asia H2 profit rises 81% to S$50.4m; posts unprecedented profit of S$90.2m for FY2022

STEEL-solutions provider BRC Asia posted an 81 per cent rise in its net profit to S$50.4 million for its second half ended Sep 30, 2022, from S$27.9 million a year earlier.

The company recorded increased sales volume and higher steel prices in the year, it said in a bourse filing on Tuesday (Nov 29).

Earnings per share of the company stood at 18.36 Singapore cents for the half-year period, up from 11.46 cents the year before.

Revenue for H2 rose 34 per cent to S$905.9 million, from S$675.9 million previously.

A final dividend of six Singapore cents a share and a special dividend of six Singapore cents was proposed for the full year, up from the final dividend of four Singapore cents and the special dividend of four Singapore cents a year earlier. The date payable will be announced later.

For the full year ended Sep 30, the company posted an unprecedented net profit of S$90.2 million, up 92 per cent from S$47 million a year earlier.

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Revenue rose 45 per cent on year to S$1.7 billion, an all-time high for the company, it said.

The company expects a low-key start in FY2023, followed by more robust project activity levels amid strong local construction demand and more supportive labour conditions.

BRC Asia’s chief executive Seah Kiin Peng expects the operating environment to be “much more challenging” amid rising costs for electricity and manpower. He noted that an increasingly competitive landscape caused by slow site progress may erode margins throughout the construction supply chain.

However, he added that construction remains a fundamental building block for Singapore. With the resumption of delayed projects, Seah also expects local reinforcing steel demand to improve from the second quarter of FY2023 onwards.

Shares of BRC Asia closed flat at S$1.77 on Tuesday, before the release of the results.