SINGAPORE (Feb 27): United Global reported 4Q18 earnings increased by 2.9% to US$2.62 million ($3.53 million), compared to US$2.54 million in 4Q17.
This brings FY18 earnings to US$7.60 million, 17.2% lower than US$9.17 million in FY17.
Revenue for the quarter declined by 16.7% to US$26.0 million, compared to US$31.2 million in the previous year, mainly due to a 17.8% y-o-y drop in the group’s manufacturing segment. This was partially offset by higher contribution from the trading segment.
With cost of sales decreasing by 18.4% y-o-y to US$20.7 million, gross profit for 4Q18 came in at US$5.36 million, 8.9% lower than US$5.89 million last year.
Administrative expenses declined by 36.7% y-o-y to US$1.44 million.
As at end-Dec 2018, the group’s cash and cash equivalents stood at US$6.08 million.
The group is declaring a final cash dividend of 0.5 cents per share, which will be payable on May 21.
Jacky Tan, executive director and CEO of United Global, says, “Moving ahead, United Global has a three-pronged growth strategy. While we continue to focus on expanding our existing lubricants business organically in the region, we will also explore synergistic partnerships and joint ventures to strengthen our presence in selected overseas markets. We will also explore opportunities to diversify our revenue streams and add value to the group.”
As at 11.00am, shares in United Global are trading at 45 cents.
