SINGAPORE (Feb 26): Halcyon Agri Corporation posts an 84.4% drop in earnings to US$11.6 million ($15.3 million) for the 4Q ended December, from US$74.5 million a year ago.
This brings full year earnings down 33.5% to US$31.7 million for FY17, from US$47.7 million a year ago.
The lower 4Q17 earnings were mainly to a decrease in other income, which fell 74.4% to US$23.8 million, from US$93.2 million a year ago.
This was mainly due to the absence of a one-off recognition of net bargain purchase of US$90.3 million on the acquisition of GMG Group and SINRIO Group in FY16.
4Q17 revenue grew 16.9% to US$401.5 million, mainly due to an increase in revenue per tonne to US$1,573 in line with the movement of the natural rubber market price, and higher sales volumes.
Selling expenses doubled to US$12.4 million in 4Q17, from US$6.0 million a year ago.
As at end December, cash and cash equivalents stood at US$153.4 million.
The group has proposed a total dividend of 2 cents per share for FY17, comprising a final dividend of 1 cent per share and a special dividend of 1 cent per share. No dividends were declared a year ago.
Looking ahead, Halcyon Agri expects market prices to remain volatile over the short term, but says it remains cautiously optimistic that the growing demand for natural rubber will help to stabilise prices at sustainable levels, backed by global macroeconomic drivers, as well as the industry’s focus on creating a sustainable natural rubber supply chain platform.
“As we enter the new financial year, the group will focus on strengthening our leading position in the Global Tyre Majors market, building up the franchise value of our PRC Tyre Majors business, and transforming our Global Non-Tyre & Specialty Tyre business into the market leading provider of specialised rubber and latex for our non-tyre customers,” says Robert Meyer, executive director and chief executive officer of Halcyon Agri.
Shares of Halcyon Agri closed at 63.5 cents of Friday.
