Contractor Syntec Construction sets record for new projects

Construction News

Contractor Syntec Construction sets record for new projects

Contractor Syntec Construction Plc secured a record high 21 new projects worth a combined 12.8 billion baht last year, benefiting from the recovering condo sector and less intense competition post-pandemic.

Chief executive Somchai Sirilertpanich said the number of new condo projects launched last year exceeded the level in 2021-22, when developers slowed new launches.

“This trend will continue this year,” he said. “We expect our revenue structure will shift back to condos as the largest share, following consecutive declines from its peak of 58% in 2020 to 56%, 45% and 32% during 2021-23.”

During the pandemic, many contractors that took on construction jobs encountered financial problems because of narrow margins and temporary closures of construction sites.

Consequently, there was a decline in confidence among developers and project owners, resulting in fewer contractors being invited to bid, down to 3-4 firms from the previous 6-7 firms before the pandemic.

Syntec had refrained from taking new jobs during the pandemic years, resulting in a reduction in new projects to 2-4 billion baht from the usual 6-8 billion baht.

Although a larger number of construction projects from the private sector, particularly condos, were launched, the company continued to focus on office buildings, hospitals and data centres, which is an emerging sector, rather than condos.

Last year, it recorded consolidated revenue of 7.5 billion baht, up from 5.1 billion baht and 5.3 billion baht in 2022 and 2021, respectively, which had dropped from around 8 billion baht in 2020 and 8.5 billion baht in 2019.

Of the total revenue, 54% came from office buildings and factories, up from 0-5% during 2019-22, he said.

Consolidated net profit in 2023 amounted to 179 million baht, which accounted for 2% of the revenue, compared with a consolidated net loss of 409 million baht in 2022.

Of the 21 new projects worth 12.8 billion baht secured last year, eight projects worth 6.5 billion baht were condos.

The remainder included three hotels, two low-rise housing projects, two office buildings, two government towers and one school and one retail space.

Syntec is constructing The Standard Na Jomtien Pattaya, a new hotel with 163 rooms it invested 900 million baht to develop. The hotel is scheduled to open in the fourth quarter.