SINGAPORE (Nov 16): Environmental engineering company Sanli Environmental announced Thursday it has secured new Engineering, Procurement and Construction (EPC) and Operations and Maintenance (O&M) contracts worth a total of $54.3 million.

Sanli will supply, install, commission and test, equipment at water reclamation plants under the EPC contracts; and will provide maintenance services for drainage, sewerage and aeration systems under the O&M contracts.

Among the contract wins was a sub-contract for the supply and installation of mechanical package for water management works at Pulau Tekong. This sub-contract is expected to contribute to Sanli’s revenue for the next four years, starting from the financial year ending Mar 31, 2019.

“We are greatly encouraged by these recent contract wins, especially amidst the current challenging operating environment. This reflects the level of confidence our customers have in our capabilities,” says Sanli CEO Sim Hock Heng.

“The group will continue to leverage on our established track record to secure more contracts and grow the business further,” he adds.

For the 1H19 ended September, Sanli reported a jump in earnings to $1.8 million, more than doubling from earnings of $0.7 million in the same half-year period a year ago.

This was mainly attributable to the absence of one-off IPO expenses of $1.2 million relating to its IPO in 1H18. As a result, other operating expenses fell 67.8% to $0.5 million, from $1.6 million a year ago.

1H19 revenue rose 12.9% to $34.7 million, from $30.8 million a year ago, led by a 31.9% increase in contribution from its EPC segment.

Administrative expenses increased by 36.6% to $2.9 million in 1H19, mainly due to expenses incurred for the business development department as well as increase in other employees’ remuneration, additional professional fees and other expenses incurred during the period.

As at end September, cash and cash equivalents stood at $8.6 million.

While Sanli expects the business environment to remain challenging amid keen competition, the group says it will continue to capitalise on its established track record in undertaking water and waste management projects in Singapore, to secure more public and private contracts.

The latest contract wins will bring Sanli’s order book to $134.4 million.

Shares in Sanli last closed at 25 cents on Nov 12.