MAINBOARD-LISTED BRC Asia : BEC 0%reported a 46.5 per cent increase in net profit to S$17.1 million for its first quarter ended Dec 31, 2023, from S$11.7 million in the same period a year before.

The steel manufacturing and solutions provider announced the results in a business update on Tuesday (Feb 6).

Revenue for Q1 increased 17 per cent to S$399.2 million, from S$341.3 million in the previous year.

As at Dec 31, 2023, the company’s order book stood at around S$1.3 billion. Projects in that book have a duration of up to five years, although that may be subject to change, it added.

The company said that upbeat forecasts for construction demand in Singapore “bode well” for the local reinforcing steel industry in the short-to-medium term, despite concerns about credit risk and a heightened inflationary environment.

It cited Building and Construction Authority (BCA) data from a briefing on Jan 15, 2024, showing that construction demand in 2023 reached S$33.8 billion, exceeding the authority’s estimate of S$27 billion to S$32 billion.

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This was a result of increasing tender prices, the expediting of construction awards for several private residential projects, and more public housing projects.

The company also referenced additional BCA forecasts which expect total construction demand for 2024 to be between S$32 billion and S$38 billion, as well as steady improvement in the medium term.

Shares of the counter closed flat at S$1.84, before the update.