Higher costs weigh on UEL's Q2 earnings

UNITED Envirotech (UEL) posted a 11.7 per cent decline in its net profit to $7.1 million for its second quarter ended Sept 30, 2013.

The profit attributable to equity-holders translated to earnings per share of 1.2 cents for the quarter, down from 1.69 cents a year ago.

The lower earnings were due to higher costs, particularly other operating expenses, which jumped 66.1 per cent to $8.7 million, mostly as a result of the operation and maintenance of its newly acquired treatment plants and higher share option expenses. Finance costs rose 27.5 per cent to $3.9 million due to convertible bonds and interest expenses on the bond issued in Q2.