800 Super posts 25% drop in 2Q earnings to $1.9 mil on higher expenses

800 Super posts 25% drop in 2Q earnings to $1.9 mil on higher expenses

By: 
Stanislaus Jude Chan
12/02/19, 06:03 pm

SINGAPORE (Feb 12): Waste disposal company 800 Super Holdings saw its earnings fall 24.8% to $1.9 million for the 2Q19 ended December, compared to earnings of $2.5 million a year ago.

This was mainly due to purchase of supplies and disposal charges, which nearly doubled to $11.3 million in 2Q19, from $5.7 million a year ago, due to expenses incurred in the operations of the public waste collection sectors, the waste treatment plants and the laundry plant.

2Q19 revenue rose 27.2% to $46.0 million, from $36.1 million a year ago.

This was mainly due to contributions from new projects, including the Pasir Ris-Bedok public waste collection sector and the waste treatment plants.

Other expenses climbed 12.0% to $6.8 million, in line with additional sector operational activities in the public waste collection sector and the waste treatment plants.

Employee benefits expense grew 15.8% to $20.9 million, mainly due to increased employee headcount following the commencement of operations of the new projects.

Earnings per share fell to 1.04 cent in 2Q19, compared to 1.38 cent a year ago.

As at end December, cash and cash equivalents stood at $7.8 million.

800 Super says the development of the laundry plant at Tuas South is in progress and remains on track for completion in the first quarter of 2019.

When completed, the laundry plant will utilise the green energy recovered from the waste treatment plants to provide industrial laundry services to customers in Singapore’s hospitality and commercial sectors.

The group says it expects to remain profitable for the next financial reporting period.

Shares in 800 Super closed flat at 68.5 cents on Tuesday.

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