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Sarine Technologies' Q4 profit slumps 62.1%
CHALLENGING industry conditions saw Sarine Technologies' net profit for the fourth quarter ended Dec 31, 2015, fall 62.1 per cent, from US$3.89 million to US$1.47 million.
This fall in profit came on the back of a 32.3 per cent drop in revenue to US$12.39 million.
For the full year, profit slumped 86.8 per cent, from US$27.2 million to US$3.59 million. Revenue took a 44.8 per cent hit, from US$87.8 million to US$48.5 million.
"The negative sentiment, primarily in the midstream, still our main customer base, started to manifest itself in the last four months of 2014," the group said.
"The combination of overly aggressive rough diamond pricing and stagnant polished diamond prices, mostly due to restrained demand from markets ex-US in general, and China in particular, resulted in unsustainably low manufacturer margins."
Earnings per share stood at 0.42 US cent and 1.03 US cents for the quarter and full year, respectively.
In the previous year, earnings per share had come in at 1.12 US cents and 7.83 US cents for the corresponding quarter and full-year period.
The board of directors has recommended a final dividend of 1.5 US cents for the full year ended Dec 31, 2015. For the previous year, a final dividend of two US cents had been recommended.
At the close of trading on Friday, Sarine Technologies' counter finished 4.5 Singapore cents or 3.4 per cent higher at S$1.37, before the release of its results.