Soilbuild’s 3Q earnings fall on completion of major projects

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SINGAPORE (Oct 31): Soilbuild Construction Group has posted earnings for 3Q14 ended Sept, decreased 36.3% to $4 million. Revenue decreased by 26.4% to $62.2 million.

Soilbuild says the decline in revenue and net profit was due mainly to completion of major construction projects in 2014 while contributions from the newly secured construction projects in 2014 will only start in 4Q14.

The group’s main revenue contributors for 3Q14 were from five construction projects: Mandai Connection project, Bukit Batok HDB project, Xin Ming Hua project, Ang Mo Kio HDB project and Rigel project. The revenue contributed by Lavender project and Tampines HDB project had substantially reduced in the third quarter due to the completion of these projects.

Group gross profit had also decreased by 30.1% to $6.6 million from $9.4 million while gross profit margin remained stable at 10.6%.

Following the award of the $47.6 million for the construction of a hospice at Thomson Road in 3Q14, Soilbuild says the group’s order book was strengthened to $666 million to date and is expected to be completed and recognised substantially over next 24 months.

Soilbuild closed flat at 24 cents today.