SINGAPORE (Feb 28): Lubricant manufacturer and trader United Global saw its full-year earnings rise 62.5% to US$9.2 million ($12.1 million) for the FY17 ended December, from US$5.6 million a year ago.
This was achieved on the back of a 9.0% rise in group revenue to US$99.8 million in FY17, from US$91.5 million a year ago.
The increase was mainly attributable to higher revenue from its Manufacturing segment, which rose 56.6% to US$79.5 million, from US$50.7 million a year ago. Sales volume jumped by 67.4%, buoyed by contribution from PT Pacific Lubritama Indonesia (PLI), which was acquired in July 2017.
This was partially offset by lower revenue from its Trading business, which tumbled 50.1% to US$20.3 million in FY17, from US$40.8 million a year ago. The decrease was largely due to the elimination of inter-group cross selling following the integration of PLI into the group.
As at end December, cash and cash equivalents stood at US$9.1 million.
United Global has recommended a final dividend of 0.7 cent per share for FY17, some 40% higher than the final dividend of 0.5 cent per share a year ago.
Together with an interim dividend of 0.5 cent per share paid earlier, this brings total dividends for FY17 to 1.2 cent per share, representing a total dividend payout of 30% of FY17’s net profit.
“The integration of our operations in Singapore and Indonesia resulted in a much larger business with triple the blending capacity to power the group’s growth amidst volatility and uncertainties in the global business environment,” says Jacky Tan, United Global’s executive director and CEO.
“Moving ahead, we will continue to focus on gaining market share and keeping an eye on our margins and sales volume,” he adds.
Shares of United Global closed half a cent up at 41 cents on Wednesday.
