SINGAPORE - SP Corp's full-year net profit fell 75 per cent to S$447,000, or 1.27 Singapore cents per share, in 2017 as higher costs and expenses swallowed up a revenue increase, the listed industrial and engineering services subsidiary of Tuan Sing Holdings said on Thursday night (Jan 25).
Counting only continuing operations, net profit would have decreased by 62 per cent to S$966,000.
Revenue rose 11 per cent to S$121.1 million, all of that coming from the commodities trading arm. Sales from the discontinued tyre distribution business, which has been sold off, fell 59 per cent to S$6.7 million.
But cost of sales rose at a slightly faster pace, up 11 per cent to S$118.7 million, dragging gross profit to S$2.3 million, a 6 per cent decline. Administrative expenses also expanded 21 per cent to S$2 million on higher rental expenses and manpower costs, weighing on the bottom line.
Looking ahead, SP said that it is exploring new business ventures as part of its diversification strategy. An existing coal allocation agreement with an Indonesian coal mine has been extended to 2021, and is expected to positively contribute to the group.
Group managing director and chief executive Boediman Gozali, also known as Tony Wu, has also indicated to the company that he expects to resume work from March 3018 after having been on medical leave since November 2017.