Hyflux sinks into the red in 2Q

Hyflux sinks into the red in 2Q

By: 
Stanislaus Jude Chan
03/08/17, 05:36 pm

SINGAPORE (Aug 3): Water solutions provider Hyflux sank to a net loss of $25.1 million for the 2Q17 ended June, from earnings of $2.6 million a year ago.

This was mainly attributable to the Tuaspring Integrated Water and Power Plant (Tuaspring), which contributed to a loss of $20.9 million due to weak power spreads in the Singapore market.

Tuaspring has been classified as ‘Held for Sale’.

Excluding Tuaspring, Hyflux posted a net loss of $4.2 million in 2Q17, compared to earnings of $32.4 million a year ago.

This was on the back of lower revenue, tumbling 65% to $81.8 million, from $231.1 million a year ago.

The decline in revenue was due to lower engineering, procurement and construction (EPC) activities for the TuasOne Waste-to-Energy (WTE) project in Singapore and the Qurayyat Independent Water Project (IWP) in the Sultanate of Oman.

In a filing to SGX on Thursday, Hyflux says this was in line with planned construction schedules.

The decline was partially mitigated by revenue recognised for its projects in the Kingdom of Saudi Arabia, which began construction during the quarter.

Cash and cash equivalents stood at $204.6 million as at end-June.

Looking ahead, Hyflux says losses are expected in the next two quarters as continued weakness in the Singapore power market is expected to adversely affect the group’s performance for the rest of 2017.

Shares in Hyflux closed half a cent higher at 49.5 cents on Thursday.

Hyflux gets non-binding letter of intent from China suitor

SINGAPORE (June 15): Hyflux has received another non-binding letter of intent (LOI) for a potential investment in the group by an investor based in China. In a Friday night filing, Hyflux says the investor is a subsidiary of a state-owned enterprise in the industrial field which works on a global scale to provide comprehensive power services. “Other fields of expertise of the investor’s holding company include wind and solar energy solutions, nuclear industry, medical technology and agriculture,” says Hyflux. See: Rags-to-riches tale goes sour for Hyflux founder Olivia Lum Se....
Read More >>

Hong Kong suspends China extradition bill

(June 15): Hong Kong’s leader suspended efforts to pass a bill allowing extraditions to China, in a dramatic reversal that she said was necessary to restore order in the Asian financial hub and avoid further violence and mass protests. Carrie Lam, Hong Kong’s chief executive, announced the legislative “pause” at a news conference Saturday, even as activists asked hundreds of thousands of residents who marched in protest last weekend to return to the streets and demand her resignation. Lam acknowledged that debate had shattered a period of relative calm in the former British colony, ....
Read More >>

Chip Eng Seng in joint $47.5 mil investment of China distressed property company

SINGAPORE (June 15): Chip Eng Seng and controlling shareholder Haiyi Investment are jointly investing RMB240 million ($47.5 million) in a distressed property company based in Taicang city in Jiangsu province, China. Chip Eng Seng says the investment will enable the project company to discharge its outstanding liabilities such that its assets will be unsealed and restart a project involving the development and construction of a residential development on a land area of 38,000 sqm, with a gross floor area of 111,111 sqm. The project company, effective controlled by local shareholder Ren We....
Read More >>