(EnergyAsia, March 1 2013, Friday) — Rotary Engineering Limited, a Singapore-based provider of engineering, procurement, construction and maintenance (EPCM) services for the oil, gas and petrochemicals industry, has proposed paying shareholders a final dividend of 0.5 Singapore cent per share despite the company reporting a full-year 2012 net loss and a 16.3% drop in revenue from 2011’s S$530.9 million. (US$1=S$1.25).
On the bright side, the company said it continues to have a strong cash position and order book worth S$750 million, with about half of that emanating from projects outside Singapore and business outlook staying healthy.
“Gross profit was significantly affected by the recognition of additional costs in relation to the construction phase of the Saudi Aramco Total Refining and Petrochemical Company (SATORP) project in Saudi Arabia. Loss attributable to shareholders was S$80.4 million compared to profit of S$31.0 million a year ago,” the company said.
Chairman and managing director Chia Kim Piow said:
“The full-year financial performance was within expectations according to profit guidance issued in September 2012. The group was expected to record a net loss for FY2012. This was largely due to problems encountered at the tail end of the construction phase of the SATORP project that resulted in additional costs.
“However, we have taken (steps) to resolve the issues. Our team continues with best effort to contain the additional costs. Work is now going well and we expect the project to be completed by the revised schedule agreed with SATORP.”
“We are busy with two major projects – the US$250 million contract for Fujairah oil terminal in the UAE and the S$300 million expansion of the oil terminal at Pulau Busing in Singapore. Both have commenced and are scheduled to be completed within two years,” he said.
Rotary said its financial position continues to be healthy, backed by S$110.5 million of net assets, translating to net asset value per share of 34 Singapore cents as at December 31 2012.
It added that better collections resulted in an increase in cash and cash equivalent balances from S$116.9 million to S$164.5 million. Net cash-flow from operations was healthy at S$87.8 million while total loans and borrowings fell by S$27.8 million to S$83.2 million.
“As a result, net cash position improved significantly from S$5.8 million to S$81.2 million,” it said.