SINGAPORE (Apr 12): Construction firm Lian Beng Group saw its earnings fall 55.3% to $3.6 million for the 3Q19 ended February, from $8.1 million a year ago.

The decline was mainly attributable to share of loss of associates and joint ventures of $3.1 million in 3Q19, compared to share of gain of associates and joint ventures of $2.5 million a year ago.

This was mainly due to losses recorded by associates in the Property Development segment as a result of adjustments in borrowing costs made to Affinity @ Serangoon and Riverfront Residences in accordance with the adoption of the Singapore Financial Reporting Standards (International) in June last year, as well as a lower share of profit from joint ventures.

3Q19 revenue rose marginally by 0.4% to $91.0 million, from $90.6 million a year ago.

Gross profit fell 15.9% to $20.9 million in 3Q19, from $24.8 million a year ago, as cost of sales rose 6.5% to $70.1 million on the back of an increase in construction cost.

Earnings per share (EPS) fell to 0.73 cents in 3Q19, from 1.62 cents a year ago.

Net asset value (NAV) per share for the group rose slightly to 135.55 cents as at Feb 28, 2019, compared to a restated NAV per share of 135.02 cents as at May 31, 2018.

As at end February, cash and cash equivalents stood at $149.2 million.

The group has an order book of $1.26 billion as at Feb 28, 2019, which is expected to provide it with a steady flow of activities through FY22.

Moving forward, Lian Beng says it continues to hold a cautious view of the residential property market outlook, as property cooling measures continue to weigh on the market segment.

However, it adds that it will monitor the market closely for opportunities to replenish its land bank, as well as for business opportunities in the region that will complement its property development business.

Shares in Lian Beng closed flat at 53.5 cents on Friday.