by Aspellian » Wed Aug 05, 2009 12:10 pm
Mainboard-listed Rotary Engineering has registered record half-year revenues of $296 million in its half yearly results for the period ended 30 June 2009, up 18% y-o-y from $251.7 million.
Profit after tax and minority interest (PATMI) was $17.4 million, a y-o-y decrease of 21% from the $21.9 million.
The decline in profit was due in part to higher operating costs, says the provider of engineering, procurement, construction and maintenance services specialising in the oil-and-gas industry.
For the period under review, Rotary’s gross profit margin remained stable at about 20% and earnings per share stood at 3.1 cents for the first half of fiscal 2009 compared to 3.9 cents in the previous corresponding period.
Quarter-on-quarter, Rotary recorded a 22% rise in revenue, from $134.6 million to $164.2 million. The higher turnover was due mainly to the recognition of revenue from several key projects that are nearing completion as scheduled.
The group registered a PATMI of $13 million, an increase of 11% over the $11.8 million registered in the last corresponding quarter.
In the second quarter of FY2009, Rotary says the lion’s share of the group’s revenue – about 71% — was derived from Singapore, with 19% contributed by the Asean countries and 11% by activities in other markets. Going forward, Rotary’s operations in Saudi Arabia are likely to contribute significantly to its revenues, in the light of its recent win and its intention to capitalise on its presence in that market.
The group’s financial position also remains sturdy with total assets of $421.7 million, net tangible assets of $217.0 million and a net cash position of $110.9 million. Its market capitalisation was $636 million, based on the closing price of $1.12 as at Aug 4.
Shareholders’ equity of $210.1 million showed an increase of 2.7% or $5.6 million higher than that recorded on Dec 31, 2008. Net asset value per share remained stable at about 37.0 cents for the period under review. Its positive net working capital stood at $116.1 million.
Rotary also says the group incurred a foreign exchange loss of $3.3 million due to the weakening of the US$ against the S$ during the three months ended June 30, 2009.
Notwithstanding, 1H2009 pretax profit rose 236% to $14.2 million while net profit increased by $8.1 million to $11.5 million, up 233%.
Annualised Return on Equity for 1H2009 was a robust 33.4%.
The group’s overall cash position was further enhanced by improved collections of trade receivables which decreased by $23.9 million, the company says.
Net operating cash flow generated was $35.2 million in 1H2009 while available cash and cash equivalents stood at $63 million as at June 30, 2009, almost double the $31.1 million as at Dec 31 2008.
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