SINGAPORE (May 15): Straits Trading Company, the group with stakes in real estate, hospitality resources and investments in Asia Pacific, has announced $21.9 million in earnings for the first quarter ended March 31 – representing a 2.7% decline from its previous year’s earnings of $136.5 million.
This brings earnings per share for the quarter under review to 5.4 cents from 5.5 cents a year ago.
Total revenue fell 5% to $133.5 million from $140 million a year ago on lower contributions from both its tin mining & smelting and property segments, which fell 4.7% and 14.4% to $130 million and $3.4 million respectively.
Revenue from the real estate segment came in lower than in 1Q16 due to the absence of rental income from an office building in Australia following completion of the sale in Nov 2016. The segment recorded a lower PATNCI of $1.92 million as compared to the previous year due to marking distressed investment properties acquired by an associate to their valuations.
PATNCI from the group’s resources business, comprising its 54.8% interest in Malaysia Smelting Corporation Berhad, fell to $2.4 million from $4.6 million in 1Q16 due to a favourable inventory valuation adjustment and a higher foreign exchange loss.
On the other hand, the hospitality segment recorded a lower profit after tax of $1.4 million due to the absence of a one-time disposal gain on the sale of a hotel which was recorded 1Q16.
Net asset value per share for the group increased to $3.37 as at March from $3.34 in end-Dec.
Cash and cash equivalents stood at $195.6 million.
“Each of our three business platforms are now starting to generate sustainable returns for our shareholders. We will continue to leverage off the capabilities and strengths of our partners in these platforms to realise the full potential of these growth engines,” says Chew Gek Khim, executive chairman of Straits Trading.
Shares of Straits Trading closed flat at $2.31 on Monday.
