SINGAPORE (May 7): United Global, the Singapore-based lubricant manufacturer and trader, posted a 32.9% rise in 1Q18 earnings to US$2.2 million ($2.9 million) from US$1.7 million a year ago on higher revenue due to a surge in contributions from its manufacturing segment.

The latest quarterly results translate to earnings per share (EPS) of 0.7 US cent, up 16.7% from that of 1Q17.

Group revenue grew 56.7% to US$31 million from US$19.8 million in 1Q17 as manufacturing revenue more than doubled to US$30.2 million from US$13.4 million previously, with increased contributions from the group’s manufacturing plants in Indonesia and Singapore.

In spite of higher sales volume, the manufacturing segment’s gross profit margin dipped by 5.6 percentage points to 19.1% over the quarter due to lower average selling price (ASP) attributable to a different product mix.  

Overall growth in manufacturing revenue was also offset in part in 88.6% lower trading revenue of US$0.7 million compared to US$6.3 million a year ago following the integration of PT Pacific Lubritama Indonesia (PLI) into the group, which resulted in the elimination of inter-group cross selling.

As at end March, United Global’s net asset value (NAV) per share grew to 11 US cents, up from 10.4 US cents as at end-2017.

“The group, with the tripling in blending capacity following the successful acquisition of PLI, will have the much-needed boost for its growth trajectory,” says executive director and CEO Jacky Tan.

"Moving ahead, we will continue to focus on driving sales volume, margins and market share, both organically and through joint ventures and strategic partnerships,” he adds.

Shares in United Global closed flat at 46 cents on Monday.