SINGAPORE (Aug 14): Tat Hong Holdings reported 1Q losses widened to $5.1 million in 1Q18 from $3.3 million in 1Q17.
However, revenue saw a 1% increase to $118.3 million in 1Q18 compared to $116.7 million in 1Q17.
The group’s Crane Rental segment revenue fell 17% to $31.3 million in 1Q18 from $37.6 million in 1Q17, mainly due to lower rental rate in Singapore and lower activity levels in Batam as well as completion of projects in Hong Kong, mitigated by higher crane utilisation rates in Malaysia and Australia.
The Tower Crane Rental division posted an 8% increase in revenue to $26.5 million in 1Q18 from $24.5 million the previous year, mainly attributable to higher tonnage rented out from an enlarged fleet.
Excluding the impact of the weaker RMB, revenue would have increased 10% in 1QFY18.
The group’s General Equipment Rental division recorded 25% y-o-y increase to $14.0 million from $11.1 million, mainly due to improved utilisation rate and longer hire period as well as commencement of new projects.
Meanwhile, revenue from the Distribution division in 1Q18 also increased 7% to $46.5 million compared to $43.5 million last year, mainly due to higher equipment and parts sales in Australia, partially offset by lower demand for cranes in Singapore, Hong Kong and overseas markets such as Middle East and Japan.
Finance expenses remained the relatively the same in 1Q18 as compared to 1Q17 at $5.42 million.
As at June 30, the group recorded $2.9 million increase in cash and cash equivalents to $116.7 million from $82.3 million last year of which $21.4 million was earmarked for certain banking facilities.
This resulted mainly from proceeds from the disposal of property, plant and equipment and net cash inflow from operating activities; partially offset by the net repayment of bank loans, finance lease obligations and interest.
Looking ahead, Tat Hong anticipates continued challenging trading conditions in the Asean countries, but it expects continued healthy demand in China and is cautiously optimistic of improving market and economic outlooks in Australia.
The group will also continue its fleet rationalisation activities and take advantage of its strong China presence to explore opportunities in China’s One Belt One Road initiative.
Shares in Tat Hong closed 1 cent lower at 34 cents on Monday.
