SINGAPORE (May 28): Ley Choon Group reported a 95.6% drop in 4Q18 earnings to $0.2 million, marking the eight consecutive quarter of profitability for the underground utilities infrastructure construction and road works service provider.

This also brings Ley Chooon’s FY18 earnings to just $1.5 million compared to $17.7 million a year ago.

In 4Q18, revenue decreased by 7% to $27.1 million from a year ago due mainly to the decrease in revenue from airport projects by $3.4 million and big pipe diameter projects by $1.4 million as a result of completion of these projects. This was however partially offset by the increase in revenue from distribution cable projects by $2.1 million.

In 4Q18, gross profit and gross profit margin came in at $4.4 million and 16.1% respectively compared to a gross profit and gross profit margin of $5.0 million and 17.0% in 4Q17. The decreases were mainly due to lower revenue and higher operational costs.

Other income for 4Q18 decreased by 91.6% to $0.6 million compared to 4Q17 due mainly to the absence of reversal of impairment losses on property, plant and equipment during the period.

Ley Choon believes that demand from the public sector remains strong, supported by major infrastructure projects such as Changi Airport Terminal 5, the Jurong Regional Line, Cross Island Line, among others.

In April, the group announced that it has secured contracts worth $11.0 million in aggregate for road and pipe installation works. These have further boosted the group’s order book which stands at $145 million, sustaining the group’s revenue and earnings visibility.

Shares in Ley Choon closed 0.1 cent higher at 3.5 cents on Monday.