Higher sales boost Q3 earnings at Sinwa

IMPROVED sales in the marine and offshore supply business lifted earnings at offshore supply and logistics player Sinwa in the third quarter.

Net profit for the three months ended Sept 30 rose 18.9 per cent to S$1.7 million, up on the S$1.4 million in the same period a year earlier.

Revenue jumped 34.9 per cent to S$44.1 million, mainly on the back of higher sales from the marine and offshore supply business in Singapore and Thailand operations, said Sinwa in a bourse filing on Tuesday evening.

Net profit for the nine months to Sept 30 climbed 3.7 per cent to S$6.l million, while revenue increased 11.8 per cent to S$128.3 million.

During the quarter, gross profit rose 23.8 per cent to S$9.9 million, although gross profit margin dropped to 22.5 per cent from 24.5 per cent previously, due to stiff market competition.

Net cash used in operating activities amounted to S$100,000, compared with a net cash inflow of S$1.7 million from operating activities previously. The lower cash from operating activities was largely the result of slower payment received from customers.

Earnings per share for the quarter came in at 0.5 Singapore cent, slightly higher than the 0.42 Singapore cent previously. Net asset value per share stood at 22.03 Singapore cents as at Sept 30, compared with 21.88 Singapore cents as at Dec 31 last year.

Sinwa group chief executive Bruce Rann noted that 2017 has been a relatively stable year compared with the preceding two years, despite continued intense competition. "We are guardedly optimistic as the shipping, oil and gas industries continue to see positive developments which could support a move towards a recovery phase," said Mr Rann.

Sinwa shares closed unchanged at 24.5 Singapore cents on Tuesday, before the results were announced.