Yongnam 2Q18 net loss nearly doubles amid project completions

Singapore two-dollar bills

Civil engineering company Yongnam reported its second quarter net loss widened to S$8.22 million from S$4.41 million in the year-ago period amid project completions and a lower level of work.

“Our second quarter results was attributed to the lower level of activities across all our business segments, including the continued low level of strutting and fabrication activities in Singapore and Hong Kong,” Seow Soon Yong, CEO of Yongnam, said in a statement.

Revenue for the quarter fell 43 percent on-year to S$45.49 million, it said in a filing to SGX after the market close on Tuesday. The loss attributable to the owners of the company was S$8.38 million, more than doubling from the year-ago quarter, Yongnam said.

The revenue contribution from the structural steelworks segment decreased 52.7 percent to S$23.3 million in the second quarter on the substantial completion of Senoko Food Hub and Jewel Changi Airport project at the end of 2017, Yongnam said. Outram Community Hospital was the segment’s key contributor in the quarter, it said.

Revenue from Specialist Civil Engineering projects decreased by 16.5 percent on-year in the second quarter to S$19.6 million, mainly on lower contribution from Hong Kong after the completion of some MTR projects, Yongnam said. In the second quarter, the segment’s main contributions came from the Thomson-East Coast MRT and the Hong Kong MTR, it said.

The design and build projects segment revenue fell 72.8 percent on-year to S$1.8 million in in the second quarter, mainly due on the substantial completion of a project for light industrial developments at Kallang Junction in Singapore at the end of 2017, Yongnam said.

For the first half, the net loss widened to S$13.0 million from S$5.67 million a year earlier, while revenue fell 41.9 percent on-year to S$99.55 million, Yongnam said.

In its outlook, Yongnam said it was “in active pursuit” of S$1.4 billion worth of new infrastructure and commercial projects, mostly in Singapore, Hong Kong, Australia, the Philippines, India and Vietnam.

“Over the medium term, public sector construction demand in Singapore is expected to be supported by mega infrastructure projects such as the Jurong Regional Line, Cross Island Line and various infrastructure developments for Changi Airport Terminal 5,” Yongnam said.

Get Shenton Wire headlines in your inbox