SINGAPORE (Feb 28): CITIC Envirotech Limited (CEL) has concluded FY18 with earnings of $113.2 million, rising 41.6% from its FY17 earnings of $79.9 million on higher revenue.
Over FY18, revenue surged 46.9% to $994.5 million in FY18 from the restated $677.2 million in the previous year.
The topline growth was mainly due to an increase in engineering revenue, which grew 39.6% to $511.5 million, as well as the doubling of membrane system sales to $255.1 million from $127 million in the previous year.
Meanwhile, the treatment segment achieved double-digit growth of 24% to $227.9 million from S$183.8 million in FY2017.
China remained the largest contributor to overall group revenue, due to higher market demand for CITIC Envirotech’s advanced membrane technology for treating and recycling wastewater.
As at end-Dec 2018, cash and cash equivalents stood at $376.5 million, down by half from $631.3 million in the previous year.
CITIC Envirotech is in a net current liability position of $251.9 million due to the payout of the first two tranches of its Multicurrency Perpetual Securities.
Nonetheless, it expects to meet its obligations within the next 12 months due to its access to credit facilities from CITIC Finance Company, as well as anticipated positive cash inflows from newly invested projects that are expected to bring in recurring treatment income in the coming years.
In addition, the group says it intends to focus more on membrane-based water treatment EPC projects from third parties to generate better cash inflows.
A final dividend of 0.75 cent has been proposed.
Together with an interim dividend of half cent per share, this brings the total dividend for the full year to 1.25 cents.
“Over the years, we have developed a comprehensive suite of solutions and capabilities in the environmental services sector. This stands us in good stead in our pursuit of larger and more complex projects in related fields. Yet, while we remain focused on building a robust pipeline of projects, we have also kept a keen eye on our future growth,” says CITIC Envirotech’s executive chairman and CEO, Hao Weibao.
“To that end, the establishment of SEA and our venture into the US reflects the Group’s commitment to build our long-term pillars of growth through the development of new products and constant investment in new technologies. We look forward to reaping the results of these strategic moves in the years to come,” he adds.
Shares in CITIC Envirotech closed flat at 44 cents on Wednesday.
