For the six months to end-June, its 1HFY2022, Straits Trading Corp reported a 3.9 times increase in Ebitda to $729.1 million. Profit after tax and non-controlling interest (PATNCI) increased 5.5 times to $673 largely due to the net gain on disposal of the group’s stake in ARA Asset Management to ESR Group.
Following the merger between ARA and ESR for a consideration comprising shares and cash, Straits Trading recognised a gain of $1,076.5 million. Of this, $142.5 million was in cash, and the remaining monies were paid via 214.7 million ESR shares. Straits Trading said in a press release that the gain represented an 18.2% IRR or 3.7 times equity multiple over its original cost of investment in ARA.
During the half-year period, Straits Real Estate or SRE acquired two office buildings in Docklands, Melbourne, and four retail warehouse parks in the United Kingdom. SRE is also in the closing stages of acquiring a portfolio of office, industrial buildings and several plots of development land in Gloucester Business Park in Gloucestershire, England.
Supported by higher average tin prices, Straits Trading’s 52% owned subsidiary, Malaysia Smelting Corporation Berhad (MSC), reported a 3.8-fold increase in PATNCI to $17.4 million in 1H2022. Average tin price increased 52% from RM111,5001 per metric tonne in 1H2021 to RM169,7001 per metric tonne in 1H2022. MSC’s new Pulau Indah Plant, which utilises more efficient technology, targets to achieve full operational capacity in 4Q2022. The plant is expected to perform at higher efficiency, lower operational and manpower costs, while reducing its overall carbon footprint.
Straits Trading closed at $3.02 on Aug 11, down 8.4% this year.
