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Yongnam posts Q1 profit despite drop in revenue

Construction firm Yongnam Holdings turned around its loss to a net profit of S$733,000 for the first quarter ended Mar 31, 2015.

This was despite revenue slipping 8.2 per cent year-on-year to S$65.9 million, largely due to lower contributions from the group's specialist civil engineering business.

Revenue contribution from its specialist civil engineering segment declined 23.2 per cent year-on-year to S$21.9 million. With the substantial completion of its Downtown Line 2 projects at the end of FY2014, revenue contributions for the first-quarter of 2015 came from on-going projects.

These include the MRT Downtown Line 2, Downtown Line 3, Thomson Line and the Hong Kong MTR.

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Revenue from the group's structural steelwork projects dipped marginally by 1.6 per cent to S$42.7, with Marina One and Changi Terminal 4 being the key contributors to the group's structural steelwork revenue.

Other income increased year-on-year from S$0.3 million to S$0.4 million for the first quarter, mainly due to higher wage credit received from the government and sale of material.

Earnings per share stood at 0.06 cents, while net asset value was 23.72 cents per share.

Yongnam's counter closed at 14.6 cents on Tuesday, down 0.3 cents.