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AP Oil International posts lower full-year profit on loss incurred by new business
MAINBOARD-LISTED AP Oil International Limited on Tuesday posted a 15 per cent fall in 2015 full year net profit to S$4.2 million, dragged by the loss incurred at its newly acquired petrochemicals business.
The lubricant and specialty chemicals manufacturer's revenue grew 9 per cent to S$85.7 million from a year ago, lifted by higher trading volume.
The increase in revenue was offset by higher cost of sales, which grew 11 per cent to S$72.1 million. The cost of sales went up as trading activities rose.
Distribution costs for 2015 rose 85 per cent year on year to S$3.52 million, due largely to higher trading volume giving rise to increase in shipping costs and storage tank rental incurred by Heptalink.
Earnings per share was 2.28 Singapore cents in 2015, down from 2.88 Singapore cents in 2014.
An interim exempt (one-tier) dividend of 0.50 Singapore cent per ordinary share was declared and will be paid on March 23 this year.
In its outlook, the group said the plummet of crude oil prices has aggravated the already murky global economy and the overall business environment is expected to be extremely challenging in 2016.
"Upon establishment of our subsidiary in Shanghai and joint-venture in Chongqing in 2015, the group is looking into developing the China market as part of our plan for long-term growth. With timely measures and strategies in place to tackle the new challenges brought about by the economic slowdown, we believe that the businesses of most of our major subsidiaries and joint ventures are to remain resilient."