SINGAPORE (Aug 13): United Global reported earnings of US$0.9 million ($1.24 million) for the 2Q ended June, halving from its 2Q17 earnings of US$2 million on higher administrative expenses.
The latest quarter’s results brings the lubricant manufacturer and trader’s earnings for 1H18 to US$3.2 million, down 13.8% from US$3.6 million a year ago.
Revenue for the latest quarter fell 5.8% to US$24.5 million from US$26.1 million on lower contributions from the trading business segment, which registered lower sales volume due to the elimination of inter-group base oil and additives cross selling from the Singapore plant to PLI, following the consolidation of PLI’s accounts.
The lower contributions from trading was however partially offset by revenue growth from the manufacturing business segment, due to higher sales from PLI in Indonesia as well as the group’s plant in Singapore.
Notably, administrative expenses grew by 60.2% to US$2.2 million from US$1.4 million in 2Q17 after factoring in three months’ worth of administrative expenses from PLI, higher staff payroll costs, and a foreign exchange loss arising from translation differences on USD-denominated liabilities.
As at end-June, United Global’s NAV per ordinary share rose to 10.5 US cents from 10.4 US cents as at end-Dec 2017.
Cash and cash equivalents stood at US$3.9 million as at end-June.
“With a much bigger blending capacity in Singapore and Indonesia, we are well-positioned to tap the business opportunities in the Asia Pacific region despite the uncertainties in the global business environment. In such challenging conditions, we will continue to be disciplined in cost controls while continuing to explore for more acquisition and joint venture opportunities,” says Jacky Tan, executive director and CEO of the group.
Shares in United Global closed flat at 46 cents on Monday.
