Novo narrows Q3 loss

SINGAPORE - Steel trading company Novo Group today announced that its net loss in its third quarter narrowed to US$83,000 (S$114,000), down from the US$2.48 million loss a year ago. Revenue was US$68.2 million, down 18.1 per cent.

For the quarter ended Jan 31, loss per share of the company also dropped to 0.09 US cent, down 93.7 per cent from the 1.45 cents loss a year ago. Net asset value per share was 18.1 US cents as at Jan 31.

Novo - which is dual-listed in Singapore and Hong Kong - is a major exporter of Chinese steel, with its North Asia business accounting for 79.5 per cent of group revenue.

The company will be affected by softening iron prices in the country, but the pace of urbanisation and economic recovery will likely sustain international demand for Chinese steel, Novo said in its announcement.

"The group believes the rising exports and infrastructure projects of Chinas (will) provide opportunities to steel and raw materials trading business in Asia. In particular, there are positive views on growth in Asian countries outside China," it said.