SINGAPORE (Feb 24): UPP reported 4Q earnings more than doubled to $5.5 million from $2.2 million a year ago.
In 4Q, the group recorded 10% higher revenue at $16.3 million although gross profit fell 5% to $4.3 million. UPP said the contribution from the paper mill and power plant businesses “remained comparable” from a year ago.
Revenue from the paper mill business rose 12% to $13.1 million while gross profit margin for the quarter decreased to 16.8% from 20.1% mainly due to higher raw material cost.
The increase in operating and maintenance income was mainly due to higher volume of electrical energy take-up by Electric Power Generation Enterprise, formerly known as Myanma Electric Power Enterprise. Gross profit from power plant business was fairly consistent compared to a year ago.
Other income mainly consisted of foreign exchange gain of $3.1 million that arose mainly from the translation of USD denominated bank balances and receivables.
For the full FY16, UPP reported earnings of $12.6 million on the back of $63.3 million in revenue.
In its outlook, UPP said the global economic outlook remains uncertain and the volatility in exchange rates versus the Singapore dollar may affect the group's reported earnings.
Nonetheless, the group said it now has a portfolio of more diversified businesses in different industries and regions, with earnings in various currencies, which should help to buffer the economic uncertainties and currency volatility
“For the existing paper mill business in Malaysia and the power plant in Myanmar, the group shall remain focused on optimising operational efficiency and cost effectiveness,” it added.
UPP has declared a final dividend of 0.5 cent.
Shares of UPP closed at 28 cents on Friday.
