SET-listed contractor Christiani & Nielsen Thai (CNT) has maintained its revenue target of 6.7 billion baht in 2021 as it expects sentiment to improve in the fourth quarter.
Surasak Osathanugraha, assistant to the managing director, said a positive sign was the government's plan to relax lockdown measures in September if new infections continue to decline.
"We are keeping our target set earlier this year and do not expect a severe impact from the third wave in the third quarter, particularly from the temporary closure of construction workers' camps, which had a direct effect on our business," he said.
If the lockdown measures are revoked next month, economic activities will resume as usual and overall economic sentiment will gradually improve in the fourth quarter, said Mr Surasak.
In the first seven months this year, CNT signed contracts for eight new construction jobs with a combined value of 1.3 billion baht.
Three were warehouse facilities and factories in Pathum Thani, Samut Sakhon and Nakhon Ratchasima. Others included a hypermarket, office buildings for petrochemical and media companies, an apartment renovation and a highway.
"Investment in new property projects has sharply contracted since last year as the market is unfavourable," Mr Surasak said. "Construction jobs from the public sector and infrastructure projects remain active and play a bigger role in construction."
The renewable energy business is another active sector during the pandemic with one of the company's subsidiaries, CNES D1 Co, recording revenue growth. This unit was established in September 2020 to develop renewable energy power-producing facilities.
It signed eight new contracts worth a combined 319 million baht in the first seven months, a decrease from 403 million baht in 2020.
CNT reported a net profit of 23 million baht on revenue of 3.51 billion in the first half of 2021, down 40% and 4.6% respectively, from the same period last year. Gross and net profit margin declined to 4.3% and 0.6%, from 5% and 1.1%, respectively.
Backlog as of the end of June 2021 dropped to 8.8 billion baht, from 9.4 billion in the first half of last year. This represents a continued declined from 12.6 billion baht in 2018 and 12.7 billion in 2019.
Mr Surasak said backlog declined as the economic slowdown dampened private investment. Of the backlog, 82% are jobs from the government, comprising 59% from buildings and 23% from infrastructure.
The company expects to win bids for two new jobs by the end of the year, he said.
