SINGAPORE (Feb 28): Straits Trading Company saw its 4Q18 earnings nearly treble to $14.1 million from $5.2 million a year ago, mainly due to higher other items of income as well as reduced other items of expense.
This brings the group’s earnings for FY18 to $71.7 million, which is 54.5% higher than the $46.4 million reported in the previous year.
Revenue for the latest quarter dipped 1.7% to $104.7 million from $106.5 million in 4Q17 due to a 7.8% decline in tin mining and smelting revenue to $94.9 million
This was offset in part by 179.1% higher property revenue of $9.8 million compared to $3.5 million a year ago, which came on the back of increased rental from additions to the group’s overseas portfolio.
Fair value changes in investment properties grew 43.7% to $10.2 million from $7.1 million in 4Q17, with the net gain arising from properties in Singapore, Japan, Australia and China.
At the same time, other income for 4Q grew to $4.4 million from just $0.2 million a year ago due to a one-time sharing of fund-related fees upon liquidation.
Notably, under items of expense, costs of tin mining and smelting fell 20.1% to $80.5 million from $100.8 million a year ago.
The group has proposed a FY18 interim dividend of 6 cents, unchanged from a year ago.
Looking ahead, Straits Trading believes 2019 will be yet another challenging year in view of ongoing geopolitical uncertainties, unease over the state of the global economy, and pressures from rising interest rates.
Nonetheless, the group says it sees “pockets of opportunities” for it to capture, adding that it intends to be cautious and especially selective with its investment opportunities going into FY19.
“We will continue to take a disciplined approach in making investments with a deliberate longer term-view, which may result in slightly more muted returns in 2019,” cautions the group.
Shares in Straits Trading closed 1 cent higher at $2.16 on Thursday.
