PEC Ltd has announced a fall in revenue for the six months ended 31 December 2016 (1HFY17) to S$201.4 million, compared to S$314.7 million in 1HFY16.
The result has been attributed to lower turnover from overseas project works following completions in FY16.
With the decline in revenue, net profit after tax fell from S$10.7 million in 1HFY16 to S$5.6 million in 1HFY17, due to a decrease in profit contribution from overseas project works.
The Group achieved a net cashflow from operations of S$19.2 million.
Robert Dompeling, PEC’s Group Chief Executive Officer, said: “Although the oil and gas industry remains highly competitive and challenging, we have witnessed a higher level of enquiries for project works in the region and the demand for maintenance services is also expected to grow.
“Despite the difficult market conditions, the Group has been actively developing its overseas business and recently won our first major maintenance contract in Vietnam to maintain the entire Nghi Son Refinery and Petrochemical Complex (NSRP Complex) for a period of seven years.”
The new US$9 billion NSRP Complex is the largest refinery and petrochemical facility in Vietnam.
Mr Dompeling added: “Our strong balance sheet will also lend support to our continued effort to fortify our brand equity, add new clients and expand into new promising markets such as Vietnam.”
PEC said that it continues to participate in several tenders in Asia and the Middle East to build up its orderbook, which stood at S$107 million as at 31 December 2016, excluding maintenance contracts.
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