High Expenses and Low Sales of Profit from Investments Drag STEC’s 2020 Earnings Down 26%

Sino-Thai Engineering and Construction Public Company Limited (STEC) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

In 2020, STEC recorded a net profit of 1,093 million baht, decreased 26.32% from a net profit of 1,483 million baht. The decrease in net profit was mainly due to higher expense and lower recognition from sales of profit from investments in associates.

The company had total revenues for the year 2020 was 36,182.25 million baht, increased 2,946.63 million baht from 2019 or 8.87%, due to the increase of construction projects. The major revenue contribution was from construction contracts, amounting to 35,769.40 million baht; increasing by 2,887.53 million baht or 8.78%.

However, the company had total expenses of 34,935 million baht, increased 3,191.18 million baht from the year 2019 or 10.05%, mainly due to an increase in cost of construction from increasing in construction projects.

Meanwhile, the company recorded 94.9 million baht from sales of profit from investments in associates, which was lower than a record of 231 million baht in 2019.