Union Gas' H1 profit down 37%

UNION Gas announced on Monday a 37 per cent drop in net profit to S$1.5 million, mainly due to the increase in administrative expenses.

The bottled gas supplier and compressed natural gas provider's earnings per share stood at 0.87 Singapore cent for the six months ended June 30, 2017. This was down from 1.38 Singapore cents a year ago.

Union's administrative expenses increased by 588.4 per cent to S$1.8 million in H1 17. The increase was mainly due to the rise in employee compensation of S$0.58 million arising from transfer of some employees involved in administrative functions from UEC Group in October 2016, listing expenses of S$0.85 million incurred up till June 30, 2017, and depreciation of S$0.07 million mainly arising from the acquisition of IT Infrastructure and related equipment from Sembas in April 2017.

Union's revenue increased by 12.6 per cent to S$19.8 million in H1, 17.

This was attributed to the increase in revenue from the retail of bottled, liquefied petroleum gas (LPG) cylinders and LPG-related accessories to mainly domestic households in Singapore, and sale and distribution of diesel to retail customers at its fuel station at 50 Old Toh Tuck Road and bulk sale of diesel to commercial customers, partially offset by decrease in sales of compressed natural gas primarily to natural gas vehicles and industrial customers for their commercial use at 50 Old Toh Tuck Road.

Union Gas launched its initial public offering on the Catalist board on July 13. It last closed trading at S$0.245 on Sept 6.