SINGAPORE (Aug 16): United Global, the lubricant manufacturer and trader, announced that 1H17 earnings increased 33.7% to US$3.64 million ($4.97 million) from US$2.72 million in 1H16.
The group’s 1H17 revenue also increased 8.3% to US$45.8 million compared to US$42.3 million the same period last year.
This came on the back of higher sales volume and average selling price of its manufacturing segment brought about by higher base oil prices.
Revenue from the manufacturing segment was lifted by 27.1% to US$27 million due to higher average selling price and sales volume. This segment’s gross profit margin improved by 0.5 percentage points, resulting in gross profit increasing by 29.5% to US$6.6 million.
Revenue from the trading segment saw a 10.7% drop to US$18.8 million due to decrease in trading volume of lubricants in 1H17, but was partially offset by higher average selling price.
However, the group’s finance costs increased 24.1% in 1H17 to US$72,000 compared to US$58,000 the previous year.
The directors have recommended an interim dividend of 0.5 cent per share, which will be paid on Sept 5.
Jacky Tan, United Global’s Executive Director and CEO, says, “Going forward, we will continue to intensify our collaborations with our distributors, to push our products across the region, even as we focus on premium markets like Australia.”
Shares in United Global closed at 34 cents on Wednesday.
