SINGAPORE (Feb 28): AsiaPhos swung back into the black with FY17 earnings of $0.2 million compared to its loss of $1.7 million a year ago on a near-doubling of full year revenue.
This comes after seeing three straight quarters of profitability, save for the latest 4Q.
See: AsiaPhos swings back to profitability in 1H17
See: AsiaPhos swings back to black with $0.1 mil in earnings for 3Q
For the 4Q17 ended Dec 2017, the group reported 30% higher losses of $0.8 million compared to $0.6 million in 4Q16 due to discontinued operations.
Revenue from continuing operations grew 17% to $10.8 million over the quarter due to higher average selling prices of phosphorous or P4 over the quarter, mitigating the lower quantity of P4 sold after production curbs were imposed in local authorities in China.
However, the bottomline was dragged down by a $0.4 million loss from discontinued operations compared to $0.5 million in profit a year ago.
The tonnage of phosphate rocks sold in 4Q17 was lower compared to 4Q16, as the group used its inventory of phosphate rocks mainly for its P4 production in the latest financial year, which consequently led to an overall fall in gross profit from the sale of phosphate rocks.
Additionally, higher general and administrative expenses, a one-time charge and differences arising from certain expenses recognised under other costs further contributed to the loss from discontinued operations.
For the full year, revenue nearly doubled to $51.1 million from $34.3 million previously, driven mainly by the downstream segment on the back of higher quantity of P5 sold and higher average selling prices.
Looking ahead, the group says it is is implementing new sustainability-driven initiatives that will improve efficiency and minimise wastage in view of the PRC government’s environmental and sustainability initiatives.
It is also in discussions with customers and strategic partners to explore other areas of cooperation that will enhance shareholder value.
“The combination of technological advancements and market developments has opened up new opportunities for phosphorous and phosphate base chemicals, and these new applications offer strong growth potential. As such, we have started to restructure our business to adopt a more focused approach in growing the downstream business which will allow us to streamline our operations and focus our resources on maximising growth opportunities,” says Ong Hian Eng, CEO and executive director of AsiaPhos.
Shares in AsiaPhos closed 3.6% lower at 2.7 cent on Wednesday.
