Rotary Engineering's Q2 profit tumbles

REACHING completion on some major projects has eroded results for Rotary Engineering for its second quarter.

Net profit tumbled 44.8 per cent to S$2.0 million from the previous year, the group said in a Singapore Exchange filing on Thursday evening.

For the three months ended June 30, revenue fell 23.1 per cent to S$51.8 million from the previous year.

"We are continuously improving our operational efficiency and cost management to remain resilient in the challenging economic environment," Rotary chairman and managing director Roger Chia said in a statement.

Earnings per share for the second quarter sank to 0.4 Singapore cent, down from 0.7 Singapore cent in the year-ago period.

Net asset value per share was 49.1 Singapore cents as at March 31, down slightly from 50.9 Singapore cents as at Dec 31 last year.

"The market outlook for the group remains challenging with the continued tightening of capital spending in the oil and gas industry," Rotary said.

At present, its order book - excluding maintenance contracts - stood at S$89.8 million, it added.

No dividend has been proposed. Rotary shares closed at S$0.40 on Thursday.