SINGAPORE (Feb 6): Piping system components distributor CosmoSteel Holdings posts a net loss of $2.7 million for the 1Q ended December, sinking deeper from a net loss of $0.9 million a year ago.
Revenue rose 24.6% to $18.5 million in 1Q18, from $14.8 million a year ago.
The increase was mainly due to increase in revenue from customers in the Energy sector, partly offset by a decrease in revenue from the Marine and the Trading sectors.
Gross profit shrank by 24.2% to $2.6 million, from $3.5 million a year ago, as gross profit margin fell 9.2 percentage points to 14.2% in 1Q18 due to margin pressure from the market.
As at end December, cash and cash equivalents stood at $19.2 million.
Looking ahead, CosmoSteel says its revenue and margin generation will continue to be impacted by market conditions, and is likely to result in a continuing loss for 1H18.
The group adds that it will continue to manage its cost and identify new potential markets and suitable opportunities for growth.
Shares in CosmoSteel closed 0.1 cent lower at 11.9 cents on Tuesday.
