STEC Posts 26% Decline in 1Q23 Earnings due to Lower Revenue Recognition

Sino-Thai Engineering and Construction Public Company Limited (SET: STEC) announced its consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 1Q23 1Q22
Net Profit (Loss)
Million Baht
170.99 231.74
Earning Per Share
0.1100 0.1500
% Change -26.22

STEC reported a net profit of Baht 171 million baht in 1Q23, decreased 26.22% from a net profit of Baht 231 million in 1Q22.

The company and its subsidiaries had total revenues for the first quarter of 2023 amounting to Baht 6,464.43 million, decreasing by Baht 1,185.36 million from the same period of the year 2022, representing 15.50%. Since the company’s revenue recognition was measured using an output method and some of the new construction projects had not commenced. The major sources of revenue are from construction contracts, amounting to Baht 6,422.35 million, and rental income, amounting to Baht 15.72 million.