SINGAPORE (Sept 15): Environmental solutions provider ecoWise reported 3Q19 ended July earnings of $0.94 million compared to a loss of $2.2 million in the same quarter last year.
Revenue for the quarter increased 9.1% to $14.7 million from $13.5 million the preceding year, on the back of higher sales of retreaded tyres and rubber compounds from the resource recovery segment.
All segments across the business displayed an increase in revenue - the group’s renewable energy segment’s revenue recorded a 3.7% increase to $2.7 million, while the integrated environmental solutions management segment’s revenue doubled to $0.4 million.
Cost of sales dipped 1.2% to $11.7 million from $11.6 million the preceding year.
Consequently, gross profit increased 58.6% to $2.9 million from $1.9 million a year ago.
Most of the group’s expenses for the quarter saw a decline - marketing and distribution, administrative and finance expenses fell by 15.0%, 26.8% and 19.0% respectively. Other losses decreased by 49.9% to $0.4 million due mainly loss to the disposal of fixed assets owing to the cessation of copper slag business.
As at end July, cash and cash equivalents stood at $1.98 million, while earnings per share came in at 0.09 cent, compared to a loss of 0.23 cent per share a year ago.
In its outlook statement, ecoWise says that it is in the midst of rationalising and reorganising its businesses, so as to achieve higher levels of efficiency, economies of scale and effectiveness with a view to improve profitability.
The group also pointed out that the resource recovery segment continues to face
challenging market conditions due to economic and market uncertainties of both raw materials and products and foreign currency fluctuations, particularly the Malaysian Ringgit. However, the group remains positive on the renewable energy sector, as it expects continuous supply and stable consumption of energy by Gardens by the Bay.
Shares in ecoWise closed flat at 2.6 cents last Friday.
