SINGAPORE - The Straits Trading Company has reported a net profit of $16.8 million for the third quarter compared to a loss of $7 million in the same period last year, on improved performance across all sectors.
Total revenue for the three months to Sept 30 fell by 18 per cent to $113.4 million.
Revenue from tin mining and smelting slumped by 19.8 per cent to $108.1 million, due to lower production of refined tin arising from lower receipt of feed materials and a weaker Malaysian ringgit on translation to Singapore dollar.
Property revenue, however, climbed by 58.2 per cent to $5.2 million.
Earnings per share improved to 4.1 cents, reversing from a loss of 1.7 cents previously. Net asset value per share firmed to $3.28 compared to $3.18 as at Dec 31.
Straits Real Estate, the group's 89.5 per cent-owned real estate investment vehicle, sold its office building in Melbourne, Australia for A$161.5 million in October 2016. It had bought the property for A$125 million.
Malaysia Smelting Corporation, the group's 54.8 per cent-owned resources arm, has seen recovery in tin prices, but market conditions remain challenging. The outlook for global commodity and resources sectors remains volatile.
Far East Hospitality Holdings (FEHH), the group's 30 per cent-owned hospitality arm, commenced management of a 140-room serviced residence - Oasia Residence, Singapore last month. This is its third Oasia-branded property launched this year.
FEHH will continue to grow its businesses by increasing the number of management contracts, acquiring strategic assets, and divesting properties to recycle capital for re-deployment towards higher yielding growth opportunities when appropriate.