SINGAPORE (Feb 23): Hyflux reported earnings of $4.8 million for the full year ended Dec 31, 2016, falling 91% from earnings of $52.5 million a year ago.
In an SGX filing on Thursday, Hyflux says this was mainly due to weaker-than-expected electricity prices in Singapore, which had “substantially wiped out” its profits.
Excluding losses from the Tuaspring plant, full year earnings would have been $118 million.
Meanwhile, Hyflux’s revenue hit a record-high of $987.0 million in FY2016, compared to revenue of $445.2 million a year ago.
The higher revenue was mainly contributed by the TuasOne Waste-to-Energy (WTE) project and Qurayyat Independent Water Project (IWP).
As at Dec 31, 2016, cash and cash equivalents stood at $260.3 million.
Hyflux has proposed a final dividend of 0.25 cent per ordinary share, bringing the total dividend for the year to 0.45 cent per ordinary share.
Looking ahead, Hyflux says 2017 is expected to be another challenging year, with losses arising from the weak Singapore power market expected to continue to offset profits.
“Despite these challenges, the Group continues to forge ahead with new project tenders,” Hyflux says.
Hyflux adds that it will be seeking partial divestment of the loss-making Tuaspring plant, in line with its asset light strategy.
Shares in Hyflux closed 1 cent higher at 63 cents on Thursday.
