SINGAPORE (Apr 1): Since it obtained approval from the National Environment Agency (NEA) in 2019 to conduct smelting operations, waste management firm Sen Yue Holdings has been looking to the new facility to bring in additional income and revenue.
Along with the escalating Covid-19 outbreak, the group might just have to wait a little longer as it grapples with manpower disruptions, which have in turn caused a delay in the construction of the new facility.
Located at 3 Jalan Pesawat, the smelting facility was slated for completion by end-March.
However, on Wednesday, Sen Yue was forced to admit that the completion of the facility would not be able to meet its original deadline.
In a regulatory filing, the group cited “disruptions to manpower of contractors” in the construction of the facility which have resulted in the delay of the completion.
As such, the group has pushed back the completion date to end-June.
In an interview on Jan 29, Sen Yue's executive chairman Koh Mia Seng had told The Edge Singapore that the facility was “still on track for completion in 1HFY2020” and that the group was “comfortable” with its current position.
“The foundation work is completed,” said Koh, noting that some 50-60% of the smelting facility had already been completed with the remaining machinery set to be delivered by end-February.
“The pre-approval for the license has been gotten. We just have to set up everything and do a trial run so NEA will come down to check if everything is in order,” added Koh.
Sen Yue had reported that it does not expect any material impact to its earnings per share or net asset value per share figures for FY2020 ending September. Yet, it is inevitable that the group will have to brace itself for a delay in the facility’s financial impact and contribution.
When asked about when investors can expect to see the new facility’s impact and contribution towards the company’s financial figures and payouts, the group had projected an estimate of 5-6 months of contribution in its FY2020 results.
If the group’s comments back then are anything to go by, the deferment of the opening means the highly lauded facility is unlikely to contribute as much to its financial figures for the whole of FY2020.
“The company is monitoring the situation and will update shareholders as and when material developments occur,” says Sen Yue in its business update today.
As at 11.38am, shares in Sen Yue Holdings are trading flat at 2.3 cents.