(EnergyAsia, March 2 2012, Friday) — Rotary Engineering Limited, a Singapore-listed provider of engineering, procurement, construction and maintenance (EPCM) services to the oil, gas and petrochemical industries, has reported a net profit of S$31 million on revenue of S$530.9 million for the year ending December 31 2011.
This compared to S$63.7 million and S$704.2 million respectively in the previous fiscal year. (US$1=S$1.25)
Despite the decline, the company’s board has proposed to pay shareholders a final dividend of two Singapore cents per share, bringing the total for the year to three cents after including the one cent interim dividend paid in September 2011.
This works out to a dividend yield of 3.8 per cent based on the closing share price of S$0.79 on February 21, and a dividend payout ratio of 55% for the year.
Rotary said its gross profit margin held steady at 21%, taking its earnings per share for FY2011 to 5.5 cents.
The bulk of its revenue was derived from its overseas operations, with the Middle East accounting for 60%, Singapore contributing 29% and the rest from Southeast Asia and elsewhere.
Rotary’s chairman and managing director Chia Kim Piow said the group has prevailed, turning in a creditable performance in a year that has seen some testing times and challenging moments.
“We continue to stay focused, and our projects on hand are all on track and progressing well. More importantly, in the last several months, we have been able to sew up some deals, and I hope that we’ll be able to convert more tenders into contracts as the year progresses,” he said.
The group’s order book to date stands at S$690 million with projects targeted to be completed and delivered progressively, up to 2013. Of this, about 80% can be attributed to projects overseas.