Revenue grew by 50% y-o-y to $287.0 million due to a higher number of projects and maintenance works across the group’s geographical segments.
Gross profit grew by a smaller 27% y-o-y to $56.4 million on higher cost of sales and lower gross profit margin (GPM) of 20%, 3 percentage points lower y-o-y. This was offset by higher profit contribution from project works and maintenance services arising from the revenue increase.
As at Dec 31, 2023, cash and cash equivalents stood at $112.3 million.
No dividend was declared for the period.
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In its outlook statement, PECnoted that energy and chemical companies are expected to become more cautious in spending amid the increasing market uncertainty and softening energy prices.
That said, national energy and chemical companies in the Middle East are expected to continue their capital expenditures (capex) to expand their production capacities as well as to pursue low-carbon projects in a bid to diversify their business and lessen their dependence on hydrocarbons.
“To support our clients in the energy transition, and capture opportunities in green energy, the group is working hard to build up engineering capabilities and track record in the area. The group will continue to invest in training its workforce and driving digitalization to improve operational efficiency and deliver our projects safely, on time, and within budget,” says Sec in its Feb 8 statement.
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As at Dec 31, 2023, the group’s order book stood at approximately $100.2 million, excluding maintenance contracts.
Shares in PEC closed flat at 52 cents on Feb 8.
