READY-MIX concrete producer Pan-United Corporation on Wednesday (Aug 3) posted a 94 per cent rise in net profit to S$13.5 million for its first half ended Jun 30, compared to S$7 million a year ago.

Revenue for the half year rose 22 per cent to S$338.1 million, from S$276.6 million a year ago.

The increase in revenue was primarily driven by the concrete and cement business, supported by the recovery of the construction industry in Singapore and higher selling prices for ready-mix concrete, the group said in a regulatory filing.

Earnings per share came in at 1.93 Singapore cents, up from 0.99 cent a year ago.

The group has declared an interim cash dividend of 0.5 cent per ordinary share, unchanged from a year ago, to be paid on Aug 26.

Costs of key raw materials such as cement, granite and sand rose further in H1 2022, in tandem with increasing commodity prices, the group noted. This led to a 20 per cent rise in raw materials, subcontract costs and other direct costs for the half year to S$261.8 million, up from S$218.1 million a year ago.

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The group also saw an increase in other expenses, especially energy costs in recent months. Additionally, with the tight skilled labour market situation in Singapore, staff costs have also risen.

Other income decreased by 46 per cent to S$1.8 million, down from S$3.3 million a year ago, without grants from the government’s Covid-19 support scheme, the group said.

Shares of Pan-United closed at S$0.465 on Wednesday, up S$0.005 or 1.1 per cent, before the results were announced.