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Singapore “Flyer” of the Week: Rotary Engineering Limited

Rotary Engineering Limited (SGX: R07) gained some 10% for the week to close at $0.77 on Thursday, making it this week’s Singapore “Flyer”.

Rotary Engineering Limited is an oil and gas infrastructure services company with extensive international experience, offering engineering, procurement, and construction management (EPCM) services to the oil and gas, petroleum, petrochemical and pharmaceutical industries. The firm has operations in Singapore, Asia and the Middle East.

On 7th May 2014, the firm made public its first quarter results. Revenue for the quarter almost doubled to S$199.2 million from S$102.8 million last year mainly due to a busy quarter with execution of on-going projects picking up pace and momentum. Revenue from our shores and the Middle East continued to contribute the bulk of its revenue. Consequently, net profit surged many times over to S$14.4 million, compared to S$2.5 million last year.

As of 31st March 2014, the firm’s net cash position improved to S$147 million from S$134 million, at the end of last year.

Rotary is currently undertaking major projects in Singapore and the Middle East worth more than S$550 million.

Mr Roger Chia Kim Piow, Chairman and Managing Director of Rotary, said, “We are seeing activities in the Middle East, in ASEAN and here in Singapore. We are actively participating in tenders and holding negotiations. My business development team is continually assessing opportunities to ensure that we follow up on all leads and do our best to secure those that will give us decent returns. In addition, we are also seeking related opportunities to complement our existing activities.”

Rotary is trading at 21 times its historical earnings and yields around 2%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.