Tiong Woon announced that its earnings for the FY2021 ended June period came in 30% higher at $9.9 million, compared to $7.6 million in FY2020, mainly due to lower expenses.
The higher earnings was despite a 9% drop in revenue to $112.9 million, compared to $124.7 million last year, attributable to challenging market conditions amid the ongoing Covid-19 pandemic resulting in a decrease in contributions across all segments.
Heavy Lift and Haulage segment revenue decreased by 2% y-o-y, mainly due to fewer projects executed in Brunei and Middle East offset by new projects executed in Indonesia.
Marine Transportation segment revenue decreased by 41% y-o-y, mainly due to fewer chartering jobs.
Trading segment revenue decreased by 95% y-o-y, mainly due to fewer equipment sold.
With cost of sales declining by 14% y-o-y to $70.5 million, FY2021 gross profit came in just 1% lower y-o-y at $42.4 million.
The group recorded other losses in FY2021 of $1.9 million, compared to other gains of $0.3 million in FY2020, mainly attributable to operational exchange loss of $2.6 million offset by gain on disposal of plant and equipment of $0.8 million in FY2021, as compared to operational exchange gain of $0.2 million and gain on disposal of plant and equipment of $0.2 million in FY2020.
During the period, the group managed to cut its expenses, as administrative expenses were 6% lower y-o-y at $1.05 million, other operatating expenses declined by 2% to $25.8 million, and finance expenses dropped by 17% to $3.0 million.
As at end June, cash and cash equivalents stood at $44.8 million.
The board has declared a final dividend of 0.3 cent per share and a special dividend of 0.1 cent per share.
Looking forward, the group admits that the operating environment continues to be challenging and uncertain despite the gradual ease of the circuit breaker measures, movement control or lockdown in Singapore and other countries which it operates in.
The group’s priority is to ensure that it has adequate liquidity to sustain its business to ride through this Covid-19 pandemic while managing its cashflow, operating costs and business risks.
Shares in Tiong Woon closed flat at 52 cents on Aug 26.
Photo: Tiong Woon