Civmec Q1 profit falls 38.6%

CIVMEC Ltd posted on Tuesday a 38.6 per cent drop in its first-quarter net profit to S$3.8 million.

Earnings per share for the three months ended Sept 30, 2017 was 0.76 Singapore cent, down from 1.23 Singapore cents a year ago.

Revenue for Q1 2018 increased 34.1 per cent to S$140.3 million.

The integrated multi-disciplinary heavy engineering and construction services provider said that gross profit was S$10 million for Q1 2018, down from S$15.4 million in the comparative period due to lower gross margins. This is due in part to a reallocation of tendering and human resource costs to operational divisions.

In the absence of this reallocation, gross profit for Q1 2018 would have been approximately S$12.1 million.

Projects secured by Civmec in Q1 2018 included steel fabrication works for Perth's Swan River Pedestrian Bridge, which it will undertake as part of an alliance, and a contract with Jemena for the Northern Gas Pipeline Pty Ltd in Australia's Northern Territory.

Civmec closed one cent lower at S$0.56 on Tuesday.