BRC Asia Q1 net profit up 38.8% at S$13.3m

STEEL solutions provide BRC Asia recorded S$13.3 million in net profit for the first quarter ended Dec 31, 2021, up 38.8 per cent from the year-ago period.

Revenue for the quarter stood at S$375 million, up 67.5 per cent from the S$213 million it posted a year ago, the company said in a business update on Wednesday (Feb 9).

As at Dec 31 last year, its sales order book stood at approximately S$1.3 billion. The duration of projects in the order book ranges up to 5 years.

The company noted that Singapore's total construction demand for 2022, as reported by the Building and Construction Authority, is expected to fall between S$27 billion and S$32 billion, "substantially more" than 2020's S$21 billion.

Sixty per cent of this demand is expected to come from the public sector.

A steady level of construction demand, coupled with the backlog of work created by the Covid-19 pandemic, is expected to raise total nominal construction output to up to S$32 billion for the year.

"This bodes well for reinforcing steel and BRC going forward, which are an integral part of the local construction supply chain," said BRC's chief executive officer Seah Kiin Peng in the update.

Shares of BRC Asia ended Wednesday up 1.24 per cent or S$0.02 at S$1.64 before the announcement.