Newly-listed engineering services firm, PEC, has posted a 16 percent drop in full year net earnings to 21 million dollars.

This was despite a 40 percent increase in revenue to 440.5 million dollars for the financial year ended June.

PEC says the profit decline was mainly due to lower contribution from higher margin project works and higher expenses arising from delay of a project.

During the financial year, the company recorded higher revenue contributions from project works in the Middle East and Singapore.

But this was partially offset by a fall in revenue from lower maintenance activities.

PEC says there are still opportunities for new projects and it will continue to explore and pursue opportunities with current and potential customers.

It adds that its long-term prospects remain promising though the operating environment for the 2010 financial year may continue to be challenging.

The company expects to stay profitable in the coming financial year barring unforeseen circumstances