Federal International (2000) sinks into red with $1.62m Q3 loss after 77% fall in revenue

SINGAPORE - Federal International (2000) posted a third-quarter net loss of $1.62 million after its revenue plunged 77.2 per cent. It posted a net profit of $1.45 million for the year-ago period.

This came after the oil and gas (O&G) procurement specialist issued a warning last Monday (Nov 5) that it expected to report a net loss for the three months ended Sept 30, 2018,  due to "lower sales from trading business segment as a result of weak demand".

Loss per share for Q3 was 1.15 cents compared to earnings per share of 1.03 cents for the year-ago period.

Third-quarter revenue fell to $9.66 million, down from $42.39 million for the same period in FY2017.

For the nine-month period, Federal International (2000) posted a net loss of $2.8 million.

The group's third-quarter gross profit was 54.1 per cent lower at $2.76 million, but its gross profit margin almost doubled to 28.6 per cent on higher margin sales for certain projects.

It warned of challenges ahead for the O&G sector due largely to a shortage of projects despite signs of recovery in oil prices.

It added that at the group level, it will continue to "manage costs and actively look for new potential markets" while continuing to seek strategic partnerships to strengthen competitiveness in the trading business.

Federal International (2000) closed flat at 24 cents on Friday.