SINGAPORE (Nov 9): Water company Hyflux has reported losses of $26.1 million for 3Q17, compared with earnings of $10.3 million in the same period last year.
In line with continuously weak prices in the Singapore electricity market, the Tuaspring Integrated Water and Power Project, which has been classified as a held for sale asset, continued to register losses of $26.6 million. Excluding results from Tuaspring, earnings came in at $0.5 million for 3Q17.
Excluding Tuaspring, revenue for 3Q17 dipped to $98.0 million from $248.5 million in the previous corresponding financial quarter. The drop in revenue came on the back of lower Engineering, Construction and Procurement (EPC) contributions from the TuasOne Waste-to-Energy (WTE) project in Singapore and Qurayyat Independent Water Project (IWP) in Oman, in line with planned construction schedules.
Municipal projects continue to represent a majority 84% or $82.2 million of the group’s revenue. Singapore and the Middle East continue to be the group’s key markets, accounting for 73% and 19% of total revenue respectively.
As at Sept 30, the group’s net gearing was at 1.07 times, with a cash position of $222.0 million. Finance costs rose 22% to $0.2 million.
Hyflux says the Singapore power market continues to adversely impact results for the Group, with losses expected for the rest of 2017.
Shares in Hyflux closed at 49 cents on Thursday.
