INFRASTRUCTURE RELATED Engineering and Technology Group Boustead Singapore reported a 34% rise in net profit to S$36 million for the first half of FY2025 ended September 30, 2024.

The increase in net profit from S$26.9 million a year earlier was mainly due to higher gross profit and interest income, the listed company said in a regulatory filing on Tuesday November 12.

Other key drivers of the increase include a reversal of an impairment loss, partially offset by other losses and higher overheads, the group added.

Additionally, net income was supported by increased average ownership in its real estate solutions division, Boustead said.

Notably, Boustead Singapore’s revenue decreased by 20 per cent year-on-year to S$295.2 million, compared to S$367.9 million in the previous corresponding period.

Overall revenue was mainly affected by lower contributions from the energy engineering and real estate solutions divisions, the group said.

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The results translated into earnings per share of S$0.075, up 33.9 per cent from S$0.056 for the corresponding period last year.

An interim dividend of S$0.015 per share was declared, unchanged from the previous year. The dividend will be paid on December 2, after closing of the accounts on November 22.

Boustead Singapore’s real estate solutions arm saw its revenue fall mainly due to a decrease in revenue recognition in light of the significantly lower order book for engineering and construction activities carried forward to the end of the financial year 2024, compared to the previous year.

Trading conditions in the first half of this financial year remain “extremely difficult”, the group noted.

The power engineering division’s revenue decline was also largely explained by lower revenue recognition resulting from a lower deferred order backlog.

Global energy prices declined and business development activities moved at a “slightly slower pace” compared to the previous year, the group said. It attributed its low order intake for the period to unfavorable market demand for oil and gas projects.

At the same time, revenues in the healthcare division were boosted by a single turnkey contract in a non-strategic business area, the group added.

Its geospatial division also saw revenue growth driven by continued stable demand for geospatial technologies and smart mapping capabilities in the region.

Wong Fong Fui, chairman and managing director of Boustead Singapore Group, said: “As we navigate the current challenges and adversities, our healthy balance sheet and strong business fundamentals will see us through the troughs of economic cycles. »

Boustead Singapore shares closed at S$1.03 on Tuesday, down S$0.01 or 1 per cent.