Ocean Sky International Limited (“Ocean Sky” or the “Group”) delivered a solid turnaround for the six months ended 30 June 2025 (“1H2025”), posting a net profit after tax of S$0.80 million, reversing a loss of S$0.58 million in 1H2024.
Group revenue climbed 29% to S$18.00 million, driven primarily by the Construction and Engineering segment, which accounted for S$17.43 million of revenue. This growth reflects both strong operational execution and the broader market environment in which the Group operates.
The Property segment contributed S$0.57 million in revenue, supported by full occupancy at the Melbourne investment property, though elevated interest costs remain a challenge.
The Group’s margins also improved across the business. Group gross profit margin expanded to 16.8% in 1H2025 from 14.9% in 1H2024, with Construction and Engineering margins rising to 15.1% for 1H2025 from 13.2% in 1H2024, due to higher-margin projects.
Ocean Sky maintained a healthy cash position in 1H2025, with cash and cash equivalents rising from S$14.77 million as at 31 December 2024 to S$15.90 million as at 30 June 2025. The Group recorded a net operating cash outflow of S$0.95 million, primarily due to net working capital outflows and taxes paid, partly offset by operating cash inflows before working capital changes. Investing activities generated a net inflow of S$3.38 million, driven by repayment from a joint venture and interest income, partially offset by refurbishment costs and equipment purchases. Financing activities reflected an outflow of S$1.50 million from debt repayments and interest expenses.
This healthy liquidity underscores Ocean Sky’s ability to support operations, invest in key assets, and maintain flexibility amid market fluctuations.
Ocean Sky’s core strength lies in its Construction and Engineering segment, which is well-positioned to benefit from government infrastructure projects and steady private residential demand. The Group’s focus on quality project execution, margin management, and cost discipline contributed to its turnaround in 1H2025.
The Property segment complements this with stable cash flow from leased assets and enhancement works aimed at retaining tenant appeal and preserving asset value. While the business faces external pressures, from elevated interest rates in Melbourne to rising construction input costs, the Group’s focus on operational efficiency and measured growth supports resilience.
Singapore’s construction sector has shown resilience in early 2025, with Q2 2025 output up 6% year-on-year, supported largely by public sector infrastructure projects. Private residential demand remains stable, though growth is moderate, while labour and material costs remain elevated and supply chain pressures persist.
In the property market, both local and overseas segments face constraints. Rising interest costs in Melbourne, a 4% absentee owner surcharge, and steady but unspectacular residential price growth in Singapore highlight the need for careful capital management. Ocean Sky’s balanced approach to operations and investment positions it to navigate these challenges effectively.
Looking ahead, Ocean Sky’s strategy emphasises stability over rapid expansion. The Singapore construction pipeline, particularly government-led projects, offers opportunities for steady revenue, while careful cost control and disciplined capital deployment remain central to sustaining recovery.
Market uncertainties from inflationary pressures to interest rate fluctuations mean that risks persist, but the Group’s operational efficiency and measured expansion provide a foundation for gradual, sustainable value creation.
For investors, Ocean Sky represents a resilient presence in Singapore’s construction and property sectors: a company steadily navigating challenges while cautiously capturing opportunities for growth.