Hyflux posts 85% plunge in Q1 earnings on lower business activities

Environmental solutions company Hyflux registered declines in revenue and net profit in the first quarter ended March 31, due to lower level of engineering, procurement and construction activities. -- PHOTO: ST FILE
Environmental solutions company Hyflux registered declines in revenue and net profit in the first quarter ended March 31, due to lower level of engineering, procurement and construction activities. -- PHOTO: ST FILE

SINGAPORE - Environmental solutions company Hyflux registered declines in revenue and net profit in the first quarter ended March 31, due to lower level of engineering, procurement and construction activities.

Revenue plummeted 32 per cent to $60.4 million, from $88.3 million in the corresponding quarter last year.

Net profit slumped 85 per cent to $5.6 million, compared with $37.9 million in the same period a year ago.

Loss per share for the quarter stood at 0.83 cent, a far cry from the 3.47 cents in earnings per share over the same period last year. Net asset value per share has also fallen to 55.7 cents, after hitting 56.6 cents in the last quarter ended Dec 31.

The municipal sector continued to be the main contributor to the Group's revenue, accounting for 84 per cent, or $51.1 million, of revenue. Revenue for the industrial sector made up 15 per cent, or $9.0 million.

Asia remained the key market for Hyflux with revenue contributions from Singapore and China accounting for 64 per cent and 11 per cent respectively. The Middle East and North Africa contributed 11 per cent while the rest of the world made up 14 per cent of the group's revenue.

Ms Olivia Lum, executive chairman and group chief executive of Hyflux, said: "We expect increased operational activities in our key projects in the second half of 2015. This will be supported by the ramp up in operation of Magtaa Desalination Plant, commissioning of Tuaspring Power Plant and the full-scale development of Qurayyat IWP. We will also continue to explore potential divestment opportunities."

Hyflux shares closed 1.5 cents down at 86.5 cents on Thursday.