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Swee Hong Q3 net profit falls 89.1% to S$295,000

THIRD-QUARTER net profit for civil engineering group Swee Hong Limited plunged 89.1 per cent to S$295,000 from the previous year.

Earnings per share fell to 0.01 Singapore cents from 0.11 Singapore cents in the year-ago period.

Revenue fell 27.8 per cent to S$11.7 million from the previous year, due to lower revenue recognised for its ER382 project in its civil engineering segment, and the completion of the Nee Soon project in its tunnelling segment.

While it managed to lower cost of works by 31 per cent to S$11.1 million thanks to increased activities and operational efficiency in the ER382 project, it was hit by a decrease in other gains from S$2.8 million in its third quarter 2017 to S$938,000 mainly due to gains on disposal of property, plant and equipment in the year-ago quarter.

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It also incurred S$263,000 in finance costs, or interest expenses on borrowing costs for working capital purposes.

Swee Hong said that it has been tendering for new projects and is waiting for the results. Its order book stands at S$17.5 million as at March 31.

Swee Hong shares closed S$0.001 or 10 per cent up to S$0.011 on Tuesday.