SINGAPORE (Apr 29): Citic Envirotech announced that its 1Q19 earnings have declined by 92.2% to $3.1 million, compared to $39.3 million in 1Q18.
Revenue for the period dropped by 72.2% to $72.1 million from $259.2 million last year.
Revenue from the engineering business decreased by 94.2% y-o-y to $6.9 million, while membrane system sales dropped 84.9% y-o-y to $13.7 million. The decrease in both business segments was mainly due to delay in two major projects, namely Meigu and Lanzhou as a result of adverse wintry condition.
The decrease in overall revenue was partially offset by an 11.0% increase in treatment revenue to $51.5 million.
Other income increased by 71.5% to $14.2 million compared to $8.3 million a year ago, mainly due to increase in net foreign exchange.
Finance costs increased by 82.3% to $16.9 million from $9.3 million in the previous year, mainly due to additions of bank loans to re-finance the perpetual capital securities in Nov 2018.
As at end-Mar, the group’s cash and cash equivalents stood at $397.1 million.
On the outlook, the group’s long-term growth prospects in China’s environmental protection industry looks positive as China has reiterated its commitment to combat environmental pollution and develop its strengths in waste treatment, despite ongoing macroeconomic climate.
This translated to greater opportunities for the group to pursue and secure more projects across a wide range of environmental services.
Looking forward, the group will continue to leverage its proprietary membrane technology and expertise in environmental engineering to entrench its position as a leading player in China’s environmental protection sector.
Shares in Citic Envirotec closed at 44 cents on Monday.
