Union Gas has announced a strong double-digit year-on-year percentage growth in both its top and bottom lines for the six months ended June.
This was led mainly by its Retail LPG business, which benefited from the higher demand from domestic households during the circuit breaker measures from April to June, and the increase in business volume from its commercial customers.
1H20 net profit surged 76.7% to $7 million, compared to the $4 million registered in 1H19, while revenue rose 27.2% to $43.2 million.
Led by stronger sales, gross profit rose 45.6% y-o-y to $18.3 million in 1H20, with an uptick of 5.4 percentage points in gross profit margin to 42.4%.
To distribute the earnings from a good first half and as a display of confidence in the Group’s prospects, Union Gas has proposed an interim dividend of 0.5 cents per share, which represents 16.4% of its net profit for 1H20.
In terms of business segments, Union Gas’ revenue from the Retail LPG Business rose 61.6% y-o-y to $34.0 million in 1H20.
This was mainly due to an increase in sales to domestic households and the group’s expansion of its commercial business segment to supply LPG to eating houses, coffee shops and commercial central kitchens.
While its retail LPG business performed strongly as a result of the Circuit Breaker measures, the restrictions on movement and business activities affected sales of both the group’s diesel business and compressed natural gas (CNG) business, which registered lower revenues of 26.9% and 49.0% y-o-y to $8.7 million and $0.5 million respectively.
Earnings per share (EPS) rose to 3.05 cents in 1H20 as compared to 1.73 Singapore cents in 1H19, while net asset value was 15.05 cents as at June 30, compared to 13.55 cents at Dec 31, 2019.
As at end June, cash and cash equivalents stood at $30.7 million, from the $21 million logged in Dec 31, 2019.
As at 9.45 am, shares of Union Gas traded at 36 cents, up 2 cents and 5.97% higher than its previous close of 34 cents.
