Sri Lanka’s Access Engineering nine month profit up 74% to Rs. 2.26 billion
Sri Lanka’s Access Engineering PLC has reportedly recorded a profit after tax (PAT) of Rs. 1.05 billion for the quarter with a corresponding YoY rise of 87.1% whilst Group figure was Rs. 1.08 billion, against a corresponding quarterly after tax profit of Rs. 692 million in 2020/21.
The Company’s PAT for the nine months has been recorded at Rs. 2.22 billion, a YoY increase of 74.1%. Primarily driven by million’s stellar performance, the Group too recorded an after tax profit of Rs. 2.26 billion which was a YoY increase of 78.4%. Earnings Per Share (EPS) for the cumulative period at the Group and Company levels were recorded at Rs. 2.26 and Rs. 2.22 respectively. For the quarter the EPS were recorded at Rs. 1.07 and Rs. 1.05 respectively at Group and Company level, according to local media reports.
The Company issuing a statement has noted that key revenue components of the group included construction (50%), construction related materials (39%), followed by automobile (9%) and property (2%). With the exception of the automobile sector, which was hampered by government-imposed vehicle import restrictions, revenue growth in other key sectors resulted in a steady margin improvement during the quarter.
Accordingly, core construction activities have recorded a 59.2% YoY increase in revenue during the nine months amounting to Rs. 13.8 billion. Main construction projects that contributed to million revenue during the period included the i – Roads project, Nittambuwa Pasyala Road Project, Elliot Place Housing Project, Stadiumgama Housing Project, Bloemendhal Housing Project, Piling and earth works for the New Terminal Building and Viaduct at Bandaranaike International Airport, Anuradhapura Water Supply Project and the Orugodawatta Housing project, the statement has further noted.
The Company has also recently commenced work on three flyovers at Gatambe, Kohuwela and Slave Island which would reduce the traffic congestion by catering to the insufficient road capacity in the respective areas.
During the third quarter, it was also awarded new projects including the design and construction of the Techno Park Development at Nuwaraeliya and Rs. 3.88 billion additional work package of the Central Expressway.
From the construction front, main highlight during the quarter was the award of Rs. 43 billion contract to construct the East Container Terminal (ECT) of the Sri Lanka Ports Authority (SLPA) to the joint venture led by Access Engineering PLC along with its technical partner China Harbour Engineering (CHEC). This is the single biggest contract awarded to a Sri Lankan-led JV to date and will be a catalyst in creating future opportunities for overseas project execution in joint partnerships in major marine construction work, for million.
The Company’s current overseas project for the construction of a T – Mall flyover and several foot bridges in Kenya is presently underway and is scheduled for completion in 2022/23. The project is carried out in joint partnership with Centunion S.A. of Spain with whom Access Engineering has executed several projects in Sri Lanka, the statement added.
OSL take:
The profits recorded by Sri Lanka’s Access Engineering shows a growth in the country’s construction industry while showcasing an overall strength and growth of the economy. Many Sri Lankan businesses recorded growth rates as well as profits despite facing challenges posed by the pandemic. This was due to the resilience of the country’s economy as well as the business conducive environment in Sri Lanka. There has been a clear increase in the construction industry with the country’s ongoing development programme as well as the positioning of the country as an emerging business destination in the South Asian region. Also, the increase in real estate value brought about by the positive movements in the country has had a direct impact on the increasing business potential in Sri Lanka’s construction industry. The expanding business/investment opportunities in Sri Lanka’s construction industry presents attractive opportunities for foreign businesses/investors.
| Article Code : | VBS/AT/23022022/Z_2 |