BRC Asia Q3 net profit doubles to S$20.4m
Paige Lim
STEEL-solutions provider BRC Asia recorded a S$20.4 million net profit for Q3 ended Jun 30, 2022, double its S$10.2 million net profit in the year before.
Revenue for the quarter rose to S$515.3 million, up from S$340.2 million a year ago, the company said in a business update. BRC’s order book was about S$1.1 billion as of end-June.
The company's net profit for the 9 months ended Jun 30 stood at S$60.2 million, more than double the S$29.3 million the year before. Its revenue for the same period rose to S$1.3 billion from S$832.9 million year on year.
BRC noted that the local construction sector grew 3.8 per cent in the second quarter, “faster” than the 1.8 per cent expansion in the preceding quarter. This was in part due to the relaxation of border restrictions on the inflow of migrant workers, it added.
It pointed out that construction site activity levels were “adversely” affected during the quarter due to 2 “transient” issues: a safety time-out from May 9 due to the rising number of workplace fatalities, and a spate of stop-work orders as a result of the high number of dengue cases, which impeded project progress.
Said BRC: “Be that as it may, with the ending of government Covid-19 support measures for the local construction industry and a rising-interest-rate environment, we are of the view that credit risk remains elevated in the local construction industry.”
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
It added that “persistently high” input costs should continue to pose “significant” challenges to businesses in this sector.
On the other hand, BRC noted that construction order books island-wide have remained “robust on the back of strong demand” for public housing and infrastructure projects, as Singapore continues to emerge from the Covid-19 pandemic.
“This bodes well for the demand for reinforcing steel and BRC, which are an integral part of the local construction supply chain,” it said.
Shares of BRC closed flat at S$1.68 on Tuesday, before the results were released.
Copyright SPH Media. All rights reserved.
