(EnergyAsia, May 7 2012, Monday) — Singapore’s Rotary Engineering Limited said its first quarter net profit fell 41% to S$3.16 million on rising construction costs at a project in Saudi Arabia and foreign exchange losses. (US$1=S$1.24).

Revenue for the January-March period rose 2% to S$133.4 million while orders on its book stood at S$596.9 million.

Rotary said its gross profit margin, at 14%, was within its guidance range of between 12% and 18%. Earnings per share fell from 0.9 cents to 0.56 cents.

The company, a provider of engineering, procurement, construction and maintenance services to the oil and gas and petrochemical industries, said it derived 60% of its revenue was derived from Saudi Arabia while Singapore contributed 34%.

Rotary is working on two major project in the Middle East: a US$745 million EPC contract from Saudi Aramco Total Refining and Petrochemical Company (SATORP) in Saudi Arabia, and a US$250 million contract for Fujairah Oil Terminal in the UAE.

Rotary’s chairman and managing director Chia Kim Piow said it is on track to complete the SATORP project by end-2012. Its scope of work includes the full range of engineering, procurement, construction activities involving 62 atmospheric storage tanks and eight bullet tanks.