A new high for HSL’s order book in 1Q, PBT at RM15.05 mln
KUCHING: Hock Seng Lee Bhd ( HSL) has had a productive start to the year in terms of both project execution and procurement, with RM346 million in new works added to HSL’s books in the first quarter of 2017.
This brings the value of HSL’s projects in hand to a high of RM2.8 billion, with RM2.4 billion of that unbilled.
A significant new contract is for the centralised wastewater management (sewerage) system for Miri city, while among more than 20 construction projects and nine property development projects now ongoing, there are two mega contracts – a section of the Pan-Borneo Highway and the second package of Kuching’s centralised wastewater management system.
According to a statement from HSL yesterday, the group is progressing on its Pan-Borneo Highway contract which covers Bintangor to Julau Junction, Btg Rajang Bridge and Sibu Airport to Sg Kua.
The sewerage projects in Kuching and Miri, which stretch to 2022 and 2021 respectively will see HSL build upon its technical expertise in tunnel boring and position itself as a contractor of choice for such works in other cities.
Overall, progress on projects has been sound in the first quarter of the calendar year with the group completing RM120 million worth of works including a muchneeded water treatment plant in Mukah and an administrative building for Samalaju Port, both in the SCORE region of central Sarawak.
Revenue for the three months to 31 March 2017 stands at RM105.18 million with profit before tax at RM15.05 million.
“It is commendable that we are sustaining sound margins while embarking on major projects which are the largest and most technically challenging we have handled to date,” noted managing director Dato Paul Yu Chee Hoe in the statement.
In keeping with recent order book growth, there have been some additions to staffing and there will be modest ongoing capital expenditure on additional plant and machinery including further tunnel boring machines for sewerage works.
While remaining headquartered in Kuching, the new works have also prompted the Group to establish operations centres in Sibu and Miri, on top of the usual site offices at project locations.
The grou’s Annual General Meeting (AGM) yesterday saw shareholders approve a final single-tier tax exempt dividend of 7 percent per ordinary share.
Added to the interim singletier tax exempt dividend of five per cent paid in October 2016, the cash dividend for 2016 will total 12 per cent.
The total dividend pay- out for 2016 is the same as that for 2015. The final dividend shall be payable on June 23, 2017 with the entitlement date set for June 9, 2017.