SINGAPORE (Nov 3): Natural rubber supply chain manager Halcyon Agri Corporation posts earnings of US$7.3 million ($9.9 million) for the 3Q ended September, reversing out of a loss of US$12.1 million a year ago.
Revenue in 3Q17 more than doubled to US$482.1 million, compared to US$187.1 million a year ago.
This was mainly due to an increase in revenue per tonne to US$1,606 in 3Q17, from US$1,426 a year ago, in line with the movement of the natural rubber market price during these periods.
In addition, sales volume more than doubled to 300,295 tonnes in 3Q17, from 131,170 tonnes a year ago. This was attributable to contribution from newly acquired assets and increased volume from existing operations.
As at end September, cash and cash equivalents stood at US$107.1 million.
In a filing to SGX on Friday, Halcyon Agri says it is realising the positive impact of certain post-merger cost tightening and revenue synergies along with an improvement in operating leverage.
The group says it believes that the dichotomy between the cost of rubber production as a specialised industrial product, and how it is priced via the various futures exchanges, presents an opportunity for it to be an aggregator in the sector.
“As we continue to unlock the benefits of our recent three-way merger, we remain committed to strengthening our market position and growing the business to create sustainable long-term value for our shareholders,” says Robert Meyer, executive director and chief executive officer of Halcyon Agri.
“Notwithstanding the volatility in rubber prices, we continue to shore up our capabilities and growth potential,” he adds.
Shares of Halcyon Agri closed half a cent lower at 58.5 cents on Friday.