Starburst Holdings' profit topples 86.3% to $0.2m in Q3

Operating expenses fell at a sluggish rate.

According to report by OCBC, Starburst Holdings’ profit after tax and minority interests dropped 86.3% to $0.2m due to operating expenses falling by a slower rate of 33.5% YoY. Drastic the dip may be, this illustrates Starburst’s rebound to profitability after suffering losses for both quarters of 1H15.

Meanwhile, the contractor’s delay in handing over of project infrastructure to the company, coupled with higher-than-expected costs for a project that saw changes to requirements impacted gross profit. Moreover, new contracts secured in the first half of 2015 from Southeast Asia and Middle East have yet to yield meaningfully as both were still in the initial stages of execution.

OCBC predicts that revenue will ramp up in 2015’s last quarter, consequently paving the way for earnings recovery in FY16.