CIVIL continues to enhance operational efficiency, securing a record construction project backlog of 23.925 billion baht. The company reveals its direction for the second half of the year, showcasing 4 key strategies to bolster growth, maintain cost management capabilities, expedite the delivery of existing projects reflecting original cost prices, and seek partnerships in renewable energy and real estate to expand opportunities into new businesses. The organization aims to enhance its potential for sustainable growth through innovation and technology. For the first half of the year, total revenue reached 2.618 billion baht with a net profit of 61 million baht and a gross profit margin of 8.5%.

Mr. Piyadit Asawasirisuk, CEO of Civil Engineering Public Company Limited (CIVIL), a leading comprehensive construction company in Thailand, disclosed that during the first half of 2023, the company successfully improved its operational efficiency in line with its goals. The effective management of construction costs amidst high material price volatility has given the company a competitive edge in cost management compared to the industry. Additionally, the company is well-prepared to take on new projects, benefiting from strong cash flow that allows for appropriate liquidity management of projects and contractors to ensure operations and deliveries proceed as planned. Furthermore, the company emphasizes rapid operational capability development while prioritizing the safety of personnel and labor, through safety training, prevention plans, and preparedness for potential accidents on construction sites.

“The company is committed to fostering growth in all dimensions, including enhancing internal operational capabilities. We plan to implement new technology systems such as RPA (Robotic Process Automation) to improve budget management, HR TECH for personnel management, and Power BI for tracking construction progress and rapid problem-solving, all aimed at elevating quality and enhancing operational efficiency,” Mr. Piyadit stated.

Meanwhile, the company has been able to operate and recognize revenue from ongoing construction projects on schedule, such as the high-speed rail project from Bangkok to Nakhon Ratchasima (Contract 2-1, Sikhiu – Kudjik) which is 99% complete, and the dual-track railway construction project. The company also plans to prepare for new construction projects, with signed contracts valued at 11.324 billion baht and several projects awaiting contract signing valued at 12.601 billion baht. This results in a total backlog of 23.925 billion baht, setting a new record for the company and allowing revenue recognition until 2026.

In terms of performance for the second quarter of 2023, the company reported total revenue of 1.170 billion baht, down from 1.561 billion baht in the same period last year, with a net profit of 13 million baht, down from 30 million baht in the previous year. For the first half of 2023, the company recorded total revenue of 2.618 billion baht, a decrease from 3.112 billion baht in the same period last year, and a net profit of 61 million baht, down from 70 million baht in the previous year. However, the gross profit margin increased from 8.4% in the previous year to 8.5%, indicating a positive trend.

“The company remains steadfast in pursuing clear future goals and aims to develop the organization towards success alongside the country. For the operational direction moving forward, especially during the second half of 2023, the company will proceed with 4 operational strategies: 1.) Maintaining cost management capabilities and recognizing revenue from construction projects while increasing opportunities for new work to continuously grow the backlog; 2.) Accelerating the delivery of old projects reflecting original cost prices and managing projects under new cost prices for maximum benefit; 3.) Focusing on growth through partnerships, such as in renewable energy and real estate, to strengthen mutual strengths and expand opportunities into new businesses that enhance construction efficiency; and 4.) Developing organizational potential to grow alongside innovation and technology to improve operational efficiency and create sustainable growth,” Mr. Piyadit added.