Soilbuild Construction swings to 1Q19 net loss on property tax

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Soilbuild Construction reported Tuesday it swung to a first quarter net loss of S$887,000 from a year-ago net profit of S$206,000 on additional property tax on its Integrated Construction and Precast Hub (ICPH) after its completion.

The ICPH completion also caused a significant increase in depreciation charges, which rose to S$1.36 million from S$676,000 in the year-ago quarter, the company said.

Revenue for the quarter ended 31 March rose 20 percent on-year to S$46.76 million on increased construction activity at its current projects, Soilbuild said in a filing to SGX.

The projects include 68 Residence Project and Rosehill Residence Project in Yangon, Myanmar, as well as the Bedok Food City Project, 164 and 171 Kallang Way Projects in Singapore, the filing said.

“The group will continue to focus in tendering for more new construction projects,” Soilbuild said. “The group is encouraged by the precast products enquiries received from potential customers, and shall execute its strategies to secure more contracts in the local market.”

In addition, Soilbuild said it began trial production at ICPH during the first quarter, and it started to register revenue amounting to around S$500,000 for product sales.

In its outlook, Soilbuild said it has obtained two new construction contracts for industrial developments in Singapore, worth around S$85.3 million in total.

It added it has five contracts with a total value of around S$3.3 million to supply and deliver precast building components.

That brought Soilbuild’s overall order book to S$445.6 million as of quarter’s end, the filing said.

 

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