TEE International posts 72.3% decline in 3Q earnings

SINGAPORE (March 28): TEE International has declared about S$200,000 (RM634,000) of earnings for the third quarter ended February 2017, down 72.3% from the S$600,000 it reported a year ago.   

Revenue for the quarter grew 13.1% to S$52.6 million compared to S$46.5 million in the previous year, which was largely due to recognition of higher progressive revenue from the group’s development properties despite lower revenue from on-going engineering projects.

As a result, cost of sales increased by S$3.3 million to S$43.4 million.

Shares of results of associates and joint ventures fell to less than S$1,000 from the S$2.3 million reported in 3Q2016, due to the completion of numerous development projects and full recognition of revenue in FY2016 by TEE Land’s associated companies.

Correspondingly, profit after tax for the quarter fell from S$900,000 to S$300,000.

In its outlook, TEE International notes a challenging business environment amid an uncertain economic outlook and increased geopolitical tensions.

The group says it will continue to be prudent in cost management with a focus on completing its ongoing engineering and real estate projects.

Additionally, it intends to grow its business development efforts by actively participating in new tenders for both Singapore and overseas engineering projects, as well as executing new marketing activities for new real estate launches.

It highlights that to date, the group has an outstanding engineering order book of approximately S$264 million.  

Shares of TEE International closed 1% higher at 19 Singapore cents yesterday. — theedgemarkets.com.sg

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