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PEC Limited reports 96% y-o-y surge in earnings of $6.9 mil for 1HFY2024

Felicia Tan
Felicia Tan • 2 min read
PEC Limited reports 96% y-o-y surge in earnings of $6.9 mil for 1HFY2024
Revenue grew by 50% y-o-y to $287.0 million due to a higher number of projects and maintenance works across the group’s geographical segments. Photo: Shutterstock
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PEC Limited, the provider of mechanical engineering and contracting services, reported earnings of $6.9 million for the 1HFY2024 ended Dec 31, 2023, 96% higher y-o-y.

Earnings per share (EPS) stood at 2.0 cents on a basic and diluted basis.

Revenue grew by 50% y-o-y to $287.0 million due to a higher number of projects and maintenance works across the group’s geographical segments.

Gross profit grew by a smaller 27% y-o-y to $56.4 million on higher cost of sales and lower gross profit margin (GPM) of 20%, 3 percentage points lower y-o-y. This was offset by higher profit contribution from project works and maintenance services arising from the revenue increase.

As at Dec 31, 2023, cash and cash equivalents stood at $112.3 million.

No dividend was declared for the period.

See also: Cordlife posts net loss of $11.57 mil for 1QFY2024 due to refund fulfilment

In its outlook statement, PEC IX2 -

noted that energy and chemical companies are expected to become more cautious in spending amid the increasing market uncertainty and softening energy prices.

That said, national energy and chemical companies in the Middle East are expected to continue their capital expenditures (capex) to expand their production capacities as well as to pursue low-carbon projects in a bid to diversify their business and lessen their dependence on hydrocarbons.

“To support our clients in the energy transition, and capture opportunities in green energy, the group is working hard to build up engineering capabilities and track record in the area. The group will continue to invest in training its workforce and driving digitalization to improve operational efficiency and deliver our projects safely, on time, and within budget,” says Sec in its Feb 8 statement.

See also: Changi Airport Group reports FY2024 earnings of $431 mil, 13.1 times higher y-o-y

As at Dec 31, 2023, the group’s order book stood at approximately $100.2 million, excluding maintenance contracts.

Shares in PEC closed flat at 52 cents on Feb 8.

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