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Sinwa posts 22% rise in Q2 earnings

MAINBOARD-LISTED Sinwa on Monday reported a 22 per cent rise in net profit to S$2.64 million for the second quarter ended June 30, 2015.

The marine, offshore supply and logistics player said the rise in earnings was mainly due to growth in customer base and increased sales volume from existing customers.

Earnings per share came in at 0.73 Singapore cent for Q2, up from 0.64 cent in the corresponding quarter last year. Revenue rose 7.4 per cent year on year to S$40.8 million.

"As a reward to shareholders, the group will be paying a special dividend of 2.25 Singapore cents per share," it said.

The dividend is payable on Sept 3.

Bruce Rann, group CEO of Sinwa, said: "The current outlook in the offshore oil and gas industry remains bearish, especially with the anticipation of Iran's return as a substantial producer of crude oil, which could significantly affect oil prices. As a result, the effects of capital expenditure cuts and fallen margins have been impressed upon the offshore and marine industry and it is facing a situation of lower demand."

However, Mr Rann said the adversities in the market will not divert the group away from its long-term strategy to focus on its core marine, offshore supply and logistics business.

He added that operations in Thailand have started this year and looks forward to the "myriad of opportunities it presents".