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Hyflux widens loss in Q1 FY2018

WATER treatment firm Hyflux's net loss widened to S$22.21 million in the first quarter ended March 31, 2018, from a restated loss of S$64,000 a year ago.

However, excluding the loss-making Tuaspring Integrated Water and Power Project, Hyflux earned a net profit of S$1.04 million, down 96 per cent from the corresponding quarter a year ago where it recorded a one-off gain of S$16.5 million from the disposal of its 50 per cent stake in Galaxy Newspring.

The weak Singapore electricity market recorded an uptick in wholesale electricity prices in March this year, resulting in a lower loss of S$23.2 million for Tuaspring for the quarter, compared to a S$27 million loss in Q1 2017, Hyflux highlighted.

Revenue for the group slid 21 per cent year on year to S$72 million, due to lower engineering, procurement and construction (EPC) activities from the TuasOne waste-to-energy (WTE) project in Singapore and the Qurayyat Independent water project (IWP) in Oman, in line with construction schedules. Meanwhile, loss per share for the quarter worked out to 4.53 Singapore cents, versus 1.82 Singapore cents previously.

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Hyflux added: "The group's performance in the next 12 months is still largely driven by the Singapore power market. While wholesale electricity prices have shown improvement in the last two months reducing losses for the group, a stronger rebound at a sustained pace is needed to turn the group profitable in 2018."

It added that divestment discussions of the Tuaspring and Tianjin Dagang plants are in progress with interested parties, while separate discussions are underway with potential investors to inject additional funds for the group's growth activities.