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Federal International (2000) posts Q2 net loss of S$228,000

OIL AND gas procurement specialist Federal International (2000) saw a net loss of S$228,000 for the fiscal second quarter ended June 30, compared to a net profit of S$1.2 million in the year-ago period. Its results release on Sunday evening followed the group's July 31 warning of a second-quarter net loss.

Revenue for the quarter declined to S$7.4 million, down 83.1 per cent from S$43.7 million in the year-ago period. Loss per share for Q2 2018 was 0.16 Singapore cent, compared to earnings per share of 0.87 Singapore cent for Q2 2017.

With the latest figures, Federal International's net loss for the first half was S$1.2 million. First-half revenue fell 67.4 per cent year-on-year to S$21.2 million from S$65.2 million, due to lower sales from the group's trading business due to the near completion of its Zawtika Development Project Phase 1C.

However, gross profit margin improved to 22.6 per cent for H1 2018, compared to 16.6 per cent for H1 2017, due to higher margins on sales for "certain projects under the trading business segment".

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Federal International said the outlook for its business continues to be challenging, adding: "Despite the recent recovery in oil prices, the oil and gas sector still faces intense competition. The oil and gas market remains volatile within the region."

It said it would continue with cost management and "actively explore entry into new potential markets", while strengthening its trading business position by finding regional partners.

Federal International shares last closed at 26 Singapore cents on Aug 2, up 2.5 cents.