SINGAPORE (May 4): Hyflux, the water solutions provider, saw 1Q17 earnings fall to $0.8 million from $7.3 million a year ago.
The Tuaspring plant (Tuaspring), which has been classified as Held for Sale, contributed losses of $27 million due to the weak Singapore power market.
Excluding results from Tuaspring, PATMI was $27.8 million, an 8% increase from $25.8 million in 1Q16.
Excluding Tuaspring, quarterly revenue came in at $91.5 million, a decrease from $222.8 million in 1Q16, largely driven by lower construction activities for the TuasOne Waste-to-Energy (WTE) project in Singapore and the Qurayyat Independent Water Project (IWP) in the Sultanate of Oman.
Municipal projects continue to be the main contributor to the group’s revenue, accounting for 87% of total revenue.
The group’s core markets – Singapore and the Middle East & North Africa (MENA) region – accounted for 64% and 26% of total revenue respectively.
For the remaining months of 2017, the group says it will be executing its EPC order book, and the profits are expected to be offset by losses from the Singapore power market.
The Qurayyat IWP in Oman is expected to start operations in 2H17 after completing testing and commissioning. While contract negotiation for the Ain Sokhna IWPP in Egypt is ongoing, progress is slower than expected, it adds.
Shares of Hyflux closed 1 cent lower at 58 cents on Thursday.
