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.