Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, today reported a 20.6% jump in the group’s net profit to $13.7 million for the three months ended September 30, 2010 (3QFY2010), despite a marginal dip in revenue from $82.6 million in 3QFY2009 to $80.8 million in 3QFY2010.
This was due to higher contribution to the revenue mix from Specialist Civil Engineering which enjoyed better margins, coupled with improved margins achieved for Structural Steelworks projects. The Group achieved a gross profit of S$22.3 million in 3QFY2010, 13.5% higher than the gross profit of S$19.7 million in 3QFY2009.
With the substantial completion of the Dubai Metro by the third quarter of FY2009 and some of its projects at Marina Bay Sands Integrated Resort at the end of last year, Yongnam saw a decrease of 7.9% in revenue from Structural Steelworks, from $55.5 million in 3QFY2009 to $51.1 million in 3QFY2010. For the quarter under review, ongoing projects like Vista Xchange at One-North, Gardens by the Bay and Crystal Pavilion at the Marina Bay Sands were the key contributors to Structural Steelworks revenue.
Strong contributions from the Group’s Marina Coastal Expressway (MCE) contracts led to an increase of 9.7% in revenue from Specialist Civil Engineering, from $27.0 million to $29.7 milion during the same period.
In 3QFY2010, the group secured its first MRT Downtown Line 2 (DTL 2) contract in August 2010 for $25.0 million and in quick succession, secured another contract worth $27.5 million in September 2010. In October 2010, two additional contracts for DTL 2 worth a total of $56.5 million were secured. These bring the total DTL 2 contracts todate to $109.0 million.
Going forward, prospects for the group remain promising with a healthy pipeline of potential projects which the group is pursuing in Singapore, Middle East, India and Hong Kong.
In Singapore, potential projects include infrastructural projects like the Singapore Sports Hub, the MRT DTL Phase 3 and other commercial projects. Overseas, the group is pursuing infrastructural projects like airport terminals and MRT in addition to commercial projects.
As at September 30, 2010, Yongnam’s order book remained strong at $451 million.
This was due to higher contribution to the revenue mix from Specialist Civil Engineering which enjoyed better margins, coupled with improved margins achieved for Structural Steelworks projects. The Group achieved a gross profit of S$22.3 million in 3QFY2010, 13.5% higher than the gross profit of S$19.7 million in 3QFY2009.
With the substantial completion of the Dubai Metro by the third quarter of FY2009 and some of its projects at Marina Bay Sands Integrated Resort at the end of last year, Yongnam saw a decrease of 7.9% in revenue from Structural Steelworks, from $55.5 million in 3QFY2009 to $51.1 million in 3QFY2010. For the quarter under review, ongoing projects like Vista Xchange at One-North, Gardens by the Bay and Crystal Pavilion at the Marina Bay Sands were the key contributors to Structural Steelworks revenue.
Strong contributions from the Group’s Marina Coastal Expressway (MCE) contracts led to an increase of 9.7% in revenue from Specialist Civil Engineering, from $27.0 million to $29.7 milion during the same period.
In 3QFY2010, the group secured its first MRT Downtown Line 2 (DTL 2) contract in August 2010 for $25.0 million and in quick succession, secured another contract worth $27.5 million in September 2010. In October 2010, two additional contracts for DTL 2 worth a total of $56.5 million were secured. These bring the total DTL 2 contracts todate to $109.0 million.
Going forward, prospects for the group remain promising with a healthy pipeline of potential projects which the group is pursuing in Singapore, Middle East, India and Hong Kong.
In Singapore, potential projects include infrastructural projects like the Singapore Sports Hub, the MRT DTL Phase 3 and other commercial projects. Overseas, the group is pursuing infrastructural projects like airport terminals and MRT in addition to commercial projects.
As at September 30, 2010, Yongnam’s order book remained strong at $451 million.
