Union Gas Holdings has achieved record earnings since its 2017 listing, with higher demand for gas from both households and commercial customers.

For the year ended Dec 31 FY2020, it reported earnings of $13.9 million, up 64.7% over the preceding year. Revenue in the same period was up 9.4% to $86.2 million.

Teo Hark Piang, Union Gas' executive director and CEO, says that while Covid-19 caused some disruptions to the company’s operations, overall performance was still strong. “We have the advantage of a diversified business where growth from our strongest segment more than made up for the weaker segments,” he says.

SEE: Union Gas inks agreement with Union Energy Corporation to acquire assets in LPG distribution, bottling, and storage businesses

Teo adds that this diversification strategy will continue. For example, last November, Union Gas further diversified its natural gas business to include piped natural gas, which opened an additional revenue stream.  “We will be seeking to drive revenue growth for this new business by securing more contracts from new customers,” he says.

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As at Dec 31, 2020, the company’s net asset value was 17.55 Singapore cents, versus 13.55 cents as at Dec 31 2019. It held cash and equivalents of $34.2 million as at Dec 31 2020, versus $21 million. “This puts the group in a strong cash position to fund future strategic growth plan,” says Union Gas.

The company plans to pay a final dividend of 2.53 cents, which, together with the 0.5 cents already paid earlier, will bring FY2020’s total payout to 3.03 cents, equal to 50% of its earnings. For FY2019, the company paid a total of 1.85 cents.

Union Gas shares closed Feb 25 at 69 cents, up 3.79%.