Part 2 of my analysis shall look at Boustead’s various divisions and their performance, as well as briefly discuss their prospects and order book as of this writing. It is important to note though, that some of the divisions had achieved record profits for FY 2009 which are not likely to be repeated, thus it is good to keep a realistic view of Boustead and not get too carried away with optimism. Realism should be the benchmark for an investor as he seeks an objective, rational picture of the Company. Segment Revenue and Contribution Engineering services saw a 20% jump in revenues for FY 2009 to S$438.8 million. Geo-spatial did not do so badly either with a 9.4% increase in revenues from S$67.8 million to S$74.2 million. Most of the contributions to Engineering Services came from the energy-related engineering division and real-estate solutions, with water and wastewater division showing yet another dismal financial year. I shall briefly examine and summarize the performance for each division and comment on its prospects. Energy-Related Engineering Division The order flow for oil and gas contracts was still steady, and thus Controls and Electrics and Boustead International Heaters got its fair share of business for the year. It was mentioned that negotiations for contracts would be slowed down in the coming financial year due to the global economic crisis; but the good news was that the rise in oil prices recently to about US$72 per barrel meant that oil majors and customers were willing to negotiate contracts again. It was also good news to hear that this unit secured its maiden contract in the United States, showing that it still had the ability to expand its geographical and customer base amid lean times. However, the ongoing re-structuring at Boustead Maxitherm also meant that it would take a while to contribute meaningfully to the entire division’s profits. Read more... Further Reading Boustead – FY 2009 Financial Analysis and Review Part 1