SINGAPORE - The Straits Trading Co has posted a first quarter net profit of $5.9 million, reversing from a loss of $300,000.
This was due mainly to higher profits from its resources operations as well as earnings from its associates, ARA Asset Management and Far East Hospitality Holdings .
Revenue for the three months to March 31 fell by 7.7 per cent to $170.3 million.
Straits Trading executive chairman Chew Gek Khim said the improved performance came as the company focuses on executing its strategies.
"We will continue to leverage off the strengths and capabilities of our various new engines to explore new opportunities and enhance our investments in the various businesses."
Earnings per share amounted to 1.4 cents compared to a loss of 0.1 cent previously while net asset value per share eased to $3.20 compared to $3.23 as at Dec 31.
The group's resources revenue fell by 8 per cent to $164.8 million. In ringgit terms, revenue increased marginally mainly due to higher sales quantity and average tin prices.
Aftertax profit, outside of non-controlling interests, rose to $2.8 million from $2 million previously.
Operations at Butterworth and Rahman Hydraulic were profitable while associates and joint ventures recorded a lower net share of losses.
Property revenue plunged by 65 per cent to $5.6 million as there was no sale of development properties. Consequently aftertax profit fell to $1.4 million compared with $6.3 million in the same period last year.