Citic Envirotech posts 66% drop in Q2 net profit to S$14.7m

NET profit for Citic Envirotech (CEL) dived 66 per cent to S$14.7 million for the second quarter ended June 30, from S$43.3 million a year ago, the wastewater treatment provider reported on Wednesday.

Q2 revenue shrank 30.3 per cent to S$202.8 million from S$291 million in Q2 2018, mainly due to a 30 per cent decrease in the engineering business and 44.7 per cent decrease in membrane system sales.

Earnings per share was 0.61 Singapore cent, down from 1.82 cents a year ago.

For the six months ended June 30, net profit was S$17.8 million, a 78.5 per cent decline from S$82.7 million in the previous year. Revenue halved to about S$275 million from S$550.2 million a year ago.

Earnings per share was 0.73 Singapore cent, compared with 3.54 cents in the corresponding period of the previous year.

CEL said it is optimistic that China's stringent environmental mandates outlined in its 13th Five Year Plan will support the wastewater treatment industry, and expects its latest capabilities in hazardous waste treatment to become a key revenue driver.

Its wholly-owned subsidiary Memstar Pte Ltd has commenced operation of its membrane manufacturing facility in Texas, and expects an increase in international sales "in tandem with higher anticipated demand for water purification and safe drinking water", CEL said.

CEL shares closed at S$0.305 on Wednesday before results were announced, down 1.5 Singapore cents or 4.69 per cent.