Rotary Engineering posts highest half year revenue of S$389m

announces interim dividend of 1 cent per share

SINGAPORE, 6 August 2009 – Mainboard-listed Rotary Engineering Limited (Rotary) today reported its half-year results for six months ended 30 June 2010. The Group turned in record revenue of S$389.2 million with net profit attributable to shareholders (PATMI) of S$27.5 million. These compare with S$296.1 million and S$17.4 million respectively in the previous corresponding period.

In appreciation of shareholders’ support, the Board of Directors has recommended an interim dividend of 1.0 Singapore cent per share, which works out to a dividend payout ratio of 20% based on first half 2010 profits.

With the 31% increase in revenue, the Group also saw its gross profit rise 23% to S$70.4 million from S$57.1 million in the previous corresponding period. Its gross profit margin remained stable at 18% and earnings per share edged up to 4.9 cents for the period against 3.1 cents in first half 2009.

The Group’s revenue for the latest reporting period was derived largely from its megaproject in Saudi Arabia, a US$745 million EPC contract from Saudi Aramco Total Refining and Petrochemical Company (SATORP) to build a refinery tank farm at Jubail.