hiap seng engineering ltd (HSE) Snapshot

Hiap Seng Engineering Limited proposed a final one-tier tax exempt dividend of 0.5 cents per ordinary share for the year ended March 31, 2013 unchanged from previous year. The proposed final dividend, if approved by the members at the Annual General Meeting to be held on July 30, 2013, will be paid on August 28, 2013. The company reported unaudited group earnings results for the fourth quarter and full year ended March 31, 2013. For the quarter, the company reported turnover of SGD 46,883,000 against SGD 39,338,000 for the same period in the last year. Loss from operations was SGD 5,541,000 against SGD 1,236,000 for the same period in the last year. Loss before tax was SGD 5,562,000 against SGD 2,309,000 for the same period in the last year. Loss attributable to owner of the parent was SGD 4,537,000 or 1.49 cents per fully diluted share against SGD 2,225,000 or 0.73 cents per fully diluted share for the same period in the last year. Net cash inflow used in operating activities was SGD 7,183,000 against of SGD 11,253,000 for the same period in the last year. Purchases of property, plant and equipment were SGD 1,120,000 against SGD 266,000 for the same period in the last year. The group's revenue increased by 19.2% mainly due to higher recognition of project revenue in the fourth quarter of fiscal 2013 as well as contributions by the two new subsidiaries in Thailand and Malaysia. For the year, the company reported turnover of SGD 237,417,000 against SGD 167,499,000 for the same period in the last year. Profit from operations was SGD 7,564,000 against SGD 7,859,000 for the same period in the last year. Profit before tax was SGD 6,867,000 against SGD 5,578,000 for the same period in the last year. Profit attributable to owner of the parent was SGD 7,257,000 or 2.48 cents per fully diluted share against SGD 4,275,000 or 1.41 cents per fully diluted share for the same period in the last year. Net cash inflow from operating activities was SGD 1,192,000 against net cash inflow used in operating activities of SGD 6,734,000 for the same period in the last year. Purchases of property, plant and equipment were SGD 5,805,000 against SGD 1,724,000 for the same period in the last year. The group's revenue for fiscal 2013 increased by 41.7% mainly due to higher recognition of project revenue in FY2013 as well as contributions by the two new subsidiaries in Thailand and Malaysia.

Hiap Seng Engineering Limited announced that it has been awarded a three-year term integrated plot contract by Singapore Refining Company Private Limited to provide plant maintenance services on a cost-plus/unit rate basis for the SRC refinery located on Jurong Island. This contract is effective for the period from April 1, 2013 to March 31, 2016. Barring any unforeseen circumstances, the group expects a positive contribution to its earnings from the contract but does not expect any material impact on the net tangible assets or earnings per share for the current financial year ending March 31, 2014.

Hiap Seng Engineering Limited reported unaudited group earnings results for the third quarter and nine months ended December 31, 2012. For the quarter, the company reported turnover was turnover was SGD 68,621,000 against SGD 42,768,000 a year ago. Profit from operations was SGD 2,691,000 against SGD 833,000 a year ago. Profit before tax was SGD 2,595,000 against SGD 488,000 a year ago. Profit attributable to owner of the parent was SGD 2,924,000 against SGD 379,000 a year ago. On fully diluted basis was 0.96 cents against 0.12 cents a year ago. Cash used in operating activities was SGD 3,407,000 against SGD 7,581,000 a year ago. The group's revenue increased by 60.4% mainly due to higher recognition of project revenue in third quarter of fiscal 2013 as well as contributions by the two new subsidiaries in Thailand and Malaysia. For the nine months, the company reported turnover was SGD 190,534,000 against SGD 128,161,000 a year ago. Profit from operations was SGD 13,105,000 against SGD 9,095,000 a year ago. Profit before tax was SGD 12,429,000 against SGD 7,887,000 a year ago. Profit attributable to owner of the parent was SGD 12,064,000 against SGD 6,500,000 a year ago. On fully diluted basis was 3.97 cents against 2.14 cents a year ago. Cash generated from operating activities was SGD 8,375,000 against SGD 4,078,000 a year ago. The group's revenue increased by 48.7% mainly due to higher recognition of project revenue in nine months of fiscal 2013 as well as contributions by the two new subsidiaries in Thailand and Malaysia. The outlook for the oil-and-gas and petrochemical industries which the group serves still remains positive and the Directors of the company are cautiously optimistic about the group's performance for the current financial year ending March 31, 2013. However, in view of keen competition and rising costs, the group will continue to control costs and take steps to improve productivity. With a healthy order book, strong financial position and established track record, it will continue to explore new business opportunities in Singapore and beyond to enhance shareholder value.