Logo of Phnom Penh Post newspaper Phnom Penh Post - DBD’s revenues slip in Q1 as net profit rockets 117%

DBD’s revenues slip in Q1 as net profit rockets 117%

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DBD Engineering Plc reported a 15 per cent year-on-year drop in revenues for the first quarter, but a 117 per cent jump in net profit. SUPPLIED

DBD’s revenues slip in Q1 as net profit rockets 117%

DBD Engineering Plc, a local publicly-listed multi-purpose engineering and construction firm, reported a dip in revenues in the first quarter of this year due to “shrinking opportunities” in the construction and property markets.

In its first-quarter financial report filed to the Cambodia Securities Exchange on May 19, DBD disclosed that revenues dipped 15 per cent year-on-year, while “cost of goods sold” declined 25 per cent, “mainly” from a decrease in costs of materials consumed and sub-contract expenses, which it said resulted in a 117 per cent jump in net profit.

Managing director Neang Vithy said in the report that total revenue for the period dipped to 16.16 billion riel ($3.98 million) from 18.97 billion riel in January-March 2021, and that “profit” – presumably net – reached 1.56 billion riel.

He said that total assets amounted to 60.70 billion riel, down 8.78 per cent year-on-year from 66.54 billion riel, which he attributed to a decrease in trade receivables and contract assets.

“In the first quarter of 2022, DBD’s revenue from the sale of materials has decreased significantly, while revenue from construction also fell since DBD had just one major project in progress this quarter – Chip Mong Mega Mall 271 – as other big projects such as ‘Wing Tower’ are in preliminary stages,” Vithy was quoted as saying.

Categorised as a small- and medium-sized enterprise (SME), DBD became the first company to list on the CSX’s secondary Growth Board on September 6, raising more than $3.84 million.

On the CSX, DBD’s share price inched down 20 riel or 0.77 per cent to close at 2,570 riel on May 19 for a full market capitalisation of 47.45 billion riel, with 6,860 shares traded. The stock has ranged from a low of 2,170 riel on November 22-24 to a high of 2,650 riel on March 21.

DBD has made a name for itself in the mechanical, electrical and plumbing (MEP) business, and offers services such as: mechanical and electrical contracting; plumbing and fire-fighting contracting; heating ventilation and air conditioning; civil construction; and building maintenance.

The amount of money pouring into the construction industry decreased last year, as just 4,303 new projects were approved nationwide, with cumulative registered capital investment of $5.33 billion, down by 31.21 per cent year-on-year from $7.75 billion from 4,841 projects, Ministry of Land Management, Urban Planning and Construction data shows.

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