The challenging business environment and operating landscape in the energy sector dragged down earnings at Tiong Woon Corporation Holding.

The integrated heavy lift specialist and services provider reported that full year net profit fell 46 per cent to $12 million.

Revenue for the 12 months to June 30 dipped 12 per cent to $145.7 million, owing to an overall decline in business activities across all its business segments.

The firm said this was "against the backdrop of the challenging operating landscape, particularly in the oil and gas and petrochemicals industries". Revenue from the heavy lift and haulage segment fell 10 per cent to $128.5 million because there were fewer heavy lift and installation projects in the Asia-Pacific region, "given the intense competition".

The business environment also affected gross profit margin, which fell to 27.8 per cent from 34 per cent a year ago.

Tiong Woon lowered its other operating expenses "through manpower rationalisation and job re-design". Finance expenses fell from $2.8 million to $700,000, as the group recorded a $2 million currency translation gain in these 12 months, compared with a currency translation loss of $100,000 a year ago.

Group chairman Ang Kah Hong said in a statement: "Despite the challenges faced during the year, Tiong Woon was able to remain profitable. The business environment is expected to remain tough going forward, but Tiong Woon is committed to focus on delivering our best to customers and shareholders.

"We remain on the lookout for strategic business opportunities that would allow us to expand our services." Earnings per share for the year was 2.57 cents, down from 4.75 cents a year ago, while net asset value was 58.25 cents as at June 30, up from 56.04 cents a year ago.

The firm has proposed a final dividend of 0.4 cent per share.

Tiong Woon shares closed 0.9 cent down at 14.1 cents yesterday.