Tiong Woon logs 25% rise in full-year earnings despite lower revenue

SINGAPORE - A gain from the sale of its subsidiaries and higher profit margins helped Tiong Woon Corporation Holding raise its net profit for the year ended June 30, even as revenue dipped.

Mainboard-listed Tiong Woon, which provides integrated services primarily for the oil and gas, petrochemical, infrastructure and construction sectors, said on Thursday that net profit rose 25 per cent from a year ago to $22.1 million for its 2014 financial year.

Turnover, however, slid 18 per cent to $165.3 million as all four of its business segments - heavy lift and haulage, marine transportation, engineering services and trading - logged lower revenues on thinner demand.

Tiong Woon managed to lower its cost of sales by more than the slip in revenues, thus registering better profit margins.

This, combined with a $3.2 million gain on the disposal of its wholly-owned units Tiong Woon Oil & Gas Services and P.T. TWC Bintan in October last year, boosted net profits.

The group's earnings per share rose to 4.75 cents for the full year, up from 3.79 cents the previous year.

Excluding discontinued operations, earnings per share would have fallen to 4.07 cents from 4.23 cents.

Net asset value per share rose to 56.04 cents as at June 30, from 51.22 cents a year ago.

"FY2014 has been a challenging year. The group took the opportunity to realign our business strategy accordingly, and has strengthened as a result of the restructuring," said group chairman and managing director Ang Kah Hong.

He said Tiong Woon will "continue to actively pursue new business opportunities in the oil and gas and petrochemical sectors across the region, while striving for improvements in operational efficiency, cost control and financial management."