CITIC Envirotech Q3 net profit falls 55.4%

NET profit attributable to shareholders for water and wastewater treatment and recycling solutions provider CITIC Envirotech (CEL) sank 55.4 per cent to S$21.9 million in its third quarter.

The company blamed this on a lower gross profit margin for its civil works business as compared to the same period a year ago.

Earnings per share dropped to 0.91 Singapore cent from 2.17 Singapore cents in the previous year.

For the three months ended Sept 30, revenue expanded 4.1 per cent to S$238.2 million from the previous year, thanks to the group's membrane system segment, which grew to S$65.5 million from S$26.5 million. Meanwhile, its engineering revenue, its biggest revenue contributor, fell 22 per cent to S$122.9 million from S$157.5 million.

Materials purchased, consumables used and subcontractors' fees increased to S$134.6 million or by 22 per cent. Other costs such as employee benefits expense, finance costs and other operating expenses also rose.

Net asset value per share slipped to 78.81 Singapore cents as at Sept 30 from 80.37 Singapore cents nine months ago.

"In China, which is our main market, the government has rolled out increasingly progressive environmental policies to curb pollution and promote ecological restoration," said executive chairman and group chief executive officer Hao Weibao. "As such, the Group remains optimistic about its prospects because we believe our expertise and solutions to address these environmental issues position us very well to reap the benefits of the country's efforts."

CEL shares finished unchanged at S$0.445 on Wednesday.