SINGAPORE (Aug 1): Logistics provider CWT, which has received a $1.4 billion privatisation offer from China's HNA Group, says 1H17 earnings doubled to $80.2 million from $37.3 million in 1H16 on higher sales.
For 1H17 ended June, CWT reported a revenue of $5.2 billion, 22% higher than the $4.2 billion last year. Gross profit rose 11% to $167.6 million from $150.7 million.
See: HNA said to face lender questions on US$1 billion CWT takeover
See: CWT confirms major shareholders in exclusive talks for potential sale to HNA
For 2Q17 ended June, earnings more than trebled to $49.9 million from $13.7 million. Revenue rose 9% to $2.6 billion from $2.4 billion.
Profit after tax for 2Q17 June came in at a record high of $82 million, more than double the $40.1 million from a year ago.
Loi Pok Yen, CWT Group CEO, says, “Our strong performance in the quarter was led by Engineering Services and Commodity Marketing amidst sluggish overall market conditions.”
As at June 30, CWT has cash and cash equivalents of $260.5 million, total equity of $925.7 million and $3.8 billion in total assets.
In its outlook, CWT says its mega integrated logistics hub is still under construction and is targeted to be completed by 3Q17.
“We are executing to our strategy, accelerating business synergies and investing in growth while realising profit improvement opportunities embedded in our business,” says Loi.
Shares in CWT closed 5 cents higher at $2.12 on Tuesday.
