Boustead Singapore, the global infrastructure-related engineering services and geo-spatial technology group, announced its financial results for the third quarter ended 31 December 2009.

For 3Q FY2010 and 9M FY2010, the group said it achieved revenue of $103.6 million (-9.6%  y-o-y) and $336.8 million (+3.6% y-o-y) respectively. Net profit attributable to owners of the parent were $8.7 million (-15.5% y-o-y) and $28.9 million (+13.7% y-o-y) for the respective periods.

Revenue from the energy-related engineering division decreased by 17.7% to $27.5 million in 3Q FY2010. Although the downstream oil & gas business performed according to expectations, its revenue continued to be impacted by a weakening Pound Sterling, as in previous quarters. The solid waste energy recovery business achieved significant progress in its restructuring exercise, which is nearing completion. The division expects further developments in negotiations for small to medium-sized contracts.

For 3Q FY2010, the water & wastewater engineering division improved on its progress with existing projects and registered revenue of $15 million, a rise of 120.6%. The division is aiming to breakeven by the end of FY2010.

Revenue at the real estate solutions division declined by 29.5% to $42 million in 3Q FY2010 when compared to the corresponding quarter last year which included $16 million revenue from an associate.

The division however continued to perform satisfactorily. In Libya, the new township business continued to face technical difficulties, although progress is being made, albeit at a slower pace than planned. The division expects to face continued challenges and will focus on its business development efforts to secure more design-and-build and design-build-and-lease contracts.

Despite being negatively impacted by the exchange rate for the Australian Dollar in 3Q FY2010, revenue from the geo-spatial technology division increased significantly by 26.6% to $18.1 million, underpinned by demand from government agencies across Australia and South East Asia.

Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead, said, “We are greatly encouraged by some of the positive developments that have taken place within the last two months including the fact that all three of Boustead’s engineering divisions have secured major contracts worth S$186 million. As we approach the end of FY2010, we are cautiously optimistic on the global operating environment. The environment appears to have improved compared to the beginning of 2009 but it still holds many challenges and difficulties.”

Wong added, “Boustead continues to actively search for opportunities to utilise our growing net cash position of $173.8 million to enhance our growth through high-quality synergistic acquisitions and investments. In the meantime, our order book backlog of more than $575 million will underpin future earnings based on our current businesses. We will deliver a good set of financial results in FY2010 although it is highly unlikely that we will repeat the record revenue and net profit achieved in FY2009.”