See Hup Seng, the provider of corrosion prevention services in Singapore and strategic value-added distributor of refined petroleum products in Asia Pacific, today reported that the Group has achieved higher revenue of $47.0 million for the three months ended 30 September 2010 (3Q10).

This represented a year-on-year (y-o-y) increase of 11% from $42.4 million in 3Q09, driven by improved sales performances of both core businesses – Refined Petroleum Distribution (TAT Petroleum) and Corrosion Prevention (CP).

Net profit in 3Q10, however, declined 27% or around $0.5 million y-o-y to $1.5 million. This decrease was attributed mainly to higher operating expenses in line with TAT Petroleum’s business expansion in the regional markets, professional fees incurred for the acquisition of the balance 49% interest in TAT Petroleum, as well as adjustment in 3Q10 for under-provision of tax in prior years for the CP business.

Nonetheless, the group raised its net profit for the nine months ended 30 September 2010 (9M10) by 39% to $4.8 million, compared to $3.4 million in the year-ago period. The recovery in business conditions, coupled with cost rationalisation efforts, led to an improvement in sales and profit for TAT Petroleum and CP business segments during 9M10. Correspondingly, profit attributable to equity holders also climbed 66% to $2.8 million in 9M10.

Despite the current challenging operating landscape, See Hup Seng believes that business opportunities will continue to exist for its CP business which is cyclical in nature. The CP segment is executing cost rationalisation and business initiatives to ensure that it remains in a strong position to seize these opportunities when they arise.

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