United Envirotech Q2 profit soars to S$18m, revenue doubles to S$105.4m
Singapore
MAINBOARD-LISTED United Envirotech on Tuesday posted a 144.9 per cent increase in its Q2 net profit to S$18 million on the back of a 102.8 per cent increase in revenue to S$105.4 million.
Its earnings per share for the three months were 1.83 Singapore cents, higher than the 1.20 Singapore cents earned during the same quarter last year.
The increase in revenue for the group during the quarter was mainly due to the increase in its treatment business, its engineering business and the addition of S$5.4 million of membrane sale to outside customers arising from the acquisition of Memstar Technology on April 11.
Revenue from the recurring water treatment business segment for the quarter ended Sept 30 grew 63.2 per cent from S$15.5 million to S$25.3 million. Earnings before income tax, depreciation and amortisation (Ebitda) for the recurring water treatment business segment increased 51.5 per cent from S$6.8 million a year ago to S$10.3 million.
Revenue from engineering, procurement, and construction (EPC) contracts jumped by 104.7 per cent to S$74.7 million. In line with the increases in EPC revenue and membrane sales, material purchased, consumables used and subcontractors' fees increased 108.3 per cent to S$60.2 million. Depreciation and amortisation expenses increased 90.5 per cent to S$2.2 million mainly due to the amortisation of intangible assets relating to the newly acquired concessions, and the depreciation on the property, plant and equipment of the membrane manufacturing facilities.
The company said that its membrane manufacturing arm, Memstar, is seeing stronger demand for membrane in countries such as China and US. With increasingly stringent water discharge standards, membrane application in wastewater treatment is becoming more prevalent. In particular, the group remains confident of China's water treatment industry, as well as the demand for membrane products and Membrane Bioreactor (MBR) technology.
It is actively seeking strategic partners to form joint venture companies to secure more EPC projects and boost membrane sales.
United Envirotech shares last changed hands at S$1.515.
