Rotary Engineering posts record revenues of S$544.7m for 3Q10
The EPCM company’s income exceeded last year’s figure of S$404.9m by 35% and turned in profit after tax of S$37.8 million, up 35% from S$28.1 million a year ago.
The group derived the greater part of its revenue from its overseas operations, with Saudi Arabia accounting for 68% of Group revenue, followed by the Singapore market at 25%, and the rest from ASEAN at 7%. The group recently bagged a US$745m EPC contract from Saudi AramcoTotal Refining and Petrochemical Company (SATORP) and work is now underway.
On a quarterly basis, the Group recorded profit after tax attributable to parent of S$10.2 million compared to the S$10.7 million in the previous corresponding quarter. It registered three-month revenue of S$155.5 million, up 43% from S$108.8 million in the previous corresponding quarter. For the quarter, gross profit margin remained constant at 25%.
Rotary’s Chairman and Managing Director Chia Kim Piow was pleased that the Group had delivered a resilient set of numbers for the period. He said: "We’ve worked hard and this is reflected in growth both in terms of revenues and profitability. Operationally, we remain focused on ensuring meticulous execution in all our projects, always keeping an eye on our cost structure. At the same time, we seek to win more and larger contracts, here as well as further afield.”
The Group’s order book stands at a healthy S$1.1 billion as at 4 November 2010 with projects targeted to be completed and delivered progressively, up to end-2012, with more than 80% of the contracts originated from overseas.
SATORP refinery construction on track
Rotary’s work at the SATORP Package 6 site in Jubail is progressing as planned. Construction is underway and the manpower on the ground currently numbers more than 2,200. Its scope of work includes the full range of engineering, procurement, construction activities involving 62 Atmospheric Storage Tanks and eight Bullet Tanks which are horizontal cylindrical longish tank mounded with earth. When completed, the 400,000 barrels per day SATORP export refinery will be one of the most advanced in the world and will refine crude oil into finished products for local and international markets.
The Middle East continues to hold promise for the Group, going forward. Just last week, it announced that it had been awarded a contract worth US$250 million by Singapore-based oil trader Concord Energy Pte Ltd to build a petroleum storage facility with capacity of 1.1 million m3, which will be operated as Fujairah Oil Terminal, in the United Arab Emirates. Works are expected to start in first quarter 2011 and targeted for completion in the fourth quarter of 2012.
Mr Chia said: “There’s still a fair bit of activity in the Oil & Gas industry and I believe there are still many business opportunities for Rotary. As we continue to strengthen our track record and build up our reputation, we are confident that there is further room for growth."