CWT's net profit fell 16 per cent in the third quarter amid lower naphtha sales and losses incurred from the Tianjin blast.
Net profit for the three months ended September was S$27.2 million, or 4.54 Singapore cents per share, as revenue halved to S$1.9 billion. For the first nine months of 2015, net profit decreased by 15 per cent to S$82.7 million as revenue fell 51 per cent to S$5.8 billion, said CWT, a logistics and derivatives trading company.
The revenue decline was mostly attributed to lower trading volumes of naphtha and a general drop in commodity prices, CWT said.
Although the company managed to cut its cost of sales in half during the third quarter to pull gross profit up by 5 per cent to S$93.7 million, the company also suffered a net loss of S$6.3 million from the August explosion in Tianjin. CWT said it lost a property and the machinery inside from the blast.
That blast led other operating expenses to widen to S$16.4 million from a year-ago S$2.2 million during the quarter, but CWT also provided for estimated insurance claims that raised other income to S$9.2 million from S$821,000 the year before.
Shares of CWT slipped 1.8 per cent, or 3.5 Singapore cents, to close at S$1.955 on Thursday before the results were announced.