CWT full-year profit dips 3% but company declares 2nd dividend of 6 cents per share

SINGAPORE - Logistics provider CWT announced it is rewarding its investors with a second dividend payout this year of 6 cents per share despite posting a 3 per cent decline in earnings.

After a 3 cents per share payout in August 2015, CWT's total dividend distribution for the year is 9 cents per share, more than double the 4 cents for 2014.

CWT said net profit for the year to Dec 31 came in 3 per cent lower at S$108.9 million on a drop in naphtha volumes and a S$8.8 million loss provision due to the August 2015 blasts in Tianjin.

"We continue to strengthen our balance sheet amid market turmoil throughout the past year," said CWT group CEO Loi Pok Yen. "We took a prudent conservative approach of not expanding aggressively in 2015 and were rewarded with a decent financial performance.

"In turn, we are rewarding investors for their patience with a much higher dividend payout as we return excess cash."

Revenue for the year dropped 30 per cent to S$9.9 billion after providing for the Tianjin blasts, and lower trading volume of naphtha and a general drop in commodity prices.

But gross profit improved 2 per cent due to better performance by financial services, freight logistics and commodity marketing. Notably, profit from financial services surged in the second half of 2015 while commodity marketing witnessed a profit decline in the fourth quarter after three quarters of good results in 2015.

For 2015, CWT generated S$317.3 million in operating cash flow and posted diluted earnings per share of 18.14 cents. Cash and cash equivalents totalled S$291.7 million. As of Dec 31, net asset value per ordinary share was 139.8 cents.

CWT added that the construction of the CWT mega integrated logistics hub is on track and is targeted to be completed by the first half of 2017.