Mainboard-listed construction and civil engineering company Tiong Seng Holdings has reported a loss of $9.2 million for the 1H20 ended June. In comparison, the company registered earnings of $2.7 million in 1H19.
The losses translated into earnings per share of -2.07 Singapore cents, compared to the 0.62 Singapore cents the previous year.
Revenue for 1H20 fell 39.8% y-o-y to $102.3 million mainly due to the decrease in work from the construction and engineering segment due to the suspension and delay in construction activities due to the pandemic and subsequent circuit breaker measures.
Tiong Seng’s construction and engineering solutions segments registered 45.0% and 46.2% y-o-y declines in revenues to $71.7 million and $21.7 million respectively. Its property development segment bucked the trend with a 10.4% y-o-y growth in revenue to $13.7 million.
Looking ahead, the company says the construction sector’s transition to full resumption is expected remain long, challenging and costly due to the implementation of tighter measures to prevent further outbreaks of Covid-19 amongst the migrant worker population.
Building contractors were allowed to resume operations from June 2 following the lifting of the circuit breaker measures.
On August 7, Tiong Seng said it expected a net loss for 1H20 due to the lockdowns.
On July 24, its former CEO and executive director Pek Lian Guan, along with former director of Tiong Seng Contractors Pay Teow Heng were both charged in court on corruption allegations.
As at June 30, cash and cash equivalents stood at $59.2 million.
Shares in Tiong Seng closed flat at 16 cents on August 14.
See: Tiong Seng expects net loss for 1H20 due to lockdowns; Bribery case still ongoing