CIVIL reveals its direction for Q2/65, anticipating the results of bidding for a mega project valued at over 5,000-10,000 million baht, which will push the backlog to reach 15,000 – 20,000 million baht. The company is closely monitoring the energy situation and rising labor costs, focusing on cost control while commencing construction on 7 projects won in Q1/65, totaling 167 million baht. They are implementing strategies to enhance project management efficiency and are venturing into the quarry business to support construction material production, preparing to negotiate partnerships for new S-Curve growth.

Mr. Piyadit Asawasirisuk, CEO of Civil Engineering Public Company Limited (CIVIL), a leader in comprehensive construction technology in Thailand, stated that the company's business direction for Q2/65 focuses on bidding for large-scale projects in both the public and private sectors. They are awaiting the results of the mega project bidding valued at over 5,000 – 10,000 million baht, with clarity expected in the second half of 2022, which will lead to a growth in backlog to the targeted level of 15,000 – 20,000 million baht.

The company continues to monitor various factors impacting the business, such as labor shortages in construction, fluctuating material costs, and the inflation and rising labor costs. They are continuously adjusting their construction management strategies to maintain good profitability.

“In the past, the construction business has faced a ‘crisis within a crisis’ and has had to manage operations with great caution, including the COVID-19 pandemic affecting labor and transportation, and the Russia-Ukraine war, which is a major cause of rising material and energy prices. However, in Q1/65, the company won bids and began construction on 7 projects worth a total of 167 million baht,” Mr. Piyadit said.

Additionally, the company plans to fully manage costs, focusing on enhancing construction operational efficiency to complete projects quickly and with quality, allowing for revenue recognition within the contract timeframe, which is a key strength of the company, especially in the Thai-Chinese high-speed rail project, where the company has progressed faster than other contractors and is ahead of the planned schedule,” Mr. Piyadit added.

Meanwhile, the company remains committed to generating revenue from other related businesses, such as commencing quarry operations in Saraburi province in Q2/65, where the company holds a mining concession, providing a source of raw materials for construction at lower costs due to proximity to the Thai-Chinese high-speed rail project, as well as generating income from selling stone to external parties. Furthermore, they are negotiating with several partners to create a New S-Curve to drive future growth for the company.

Regarding the financial performance, in Q1/65, the company reported total revenue of 1,649.42 million baht, an increase from 1,186.82 million baht in the same period last year, a rise of 462.60 million baht or 38.98%. The net profit stood at 40.31 million baht, down from 69.15 million baht in the same period last year, a decrease of 28.84 million baht or 41.71%. However, compared to Q4/64, net profit increased by 17.82 million baht or 79.24%.