SINGAPORE (May 15): United Global, the lubricant manufacturer and trader in Singapore and Indonesia, reported reported 1Q19 earnings of US$2.1 million ($2.9 million), down 3.6% from a year ago.
Group revenue for 1Q19 retreated 23% to US$23.8 million, affected by lower manufacturing output, and mitigated by a significant rise in trading volume. However, gross profit margin improved by 1.0 percentage point to 19.9% lifted by the manufacturing segment.
The Manufacturing segment recorded a 34.1% decrease in revenue to US$19.9 million, as a result of lower sales volume from its Indonesian subsidiary, which was partially offset by an increase in average selling price.
Trading sales volume surged during the period, generating revenue of US$3.9 million in 1Q19, more than fivefold from 1Q18. However, gross profit margin saw a 8.7 percentage point decline to 2.0%, resulting in flat trading gross profit of US$77,000.
In 1Q19, the group achieved earnings per share of 0.7 US cents while net asset value per ordinary share rose to 12.3 US cents as at end March, from 11.5 US cents as at Dec 31.
Cash and cash equivalents (excluding fixed deposits and restricted cash balances) rose to US$9.4 million from US$8.9 million.
As the group’s businesses depend on markets and economic conditions in the Asia-Pacific region and the overall market environments are expected to remain challenging, United Global says it will continue to be diligent and disciplined in controlling the costs as well as manage our raw materials costs.
Shares in United Global closed at 49 cents on Wednesday before the results were announced.
