NSL H2 net profit falls 43% to S$4.9 million on impairment loss
Renald Yeo
INDUSTRIAL group NSL’s net profit in the second half (H2) fell by 43 per cent, due primarily to an impairment loss on an investment in an associated company.
Net profit for the six months ended Dec 31, 2022 stood at S$4.9 million, down from S$8.5 million in the corresponding period previously. Earnings per share for H2 2022 was 1.30 Singapore cents per share, also down from 2.29 Singapore cents in 2021.
NSL booked a S$16.1 million impairment loss on an investment in German lifting-equipment maker Salzgitter Maschinenbau in the second half, it said in a regulatory filing on Thursday (Feb 23).
Revenue for the second half of FY2022 rose 45 per cent to S$194.8 million, from S$133.9 million in 2021, thanks to improvements in selling prices and higher project volumes from NSL’s precast operations in Malaysia and Dubai.
The board has proposed a final dividend of five Singapore cents per share for H2 2022, unchanged from what was paid out for the same period the year before.
For the full year ended Dec 31, 2022, net profit more than doubled to S$10.7 million, and revenue rose 62 per cent to S$369.7 million.
“Performance of the precast business in Singapore, Malaysia and Dubai are expected to be satisfactory on the back of strong order books amid lower margins, barring unforeseen project delays,” said NSL.
The counter closed 4 per cent or S$0.035 to S$0.84 on Thursday, prior to the announcement.
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