Novo Group's Q3 loss narrows

China-based steel company Novo Group said on Tuesday that its third quarter loss narrowed to US$83,000 from a loss of US$2.49 million for the same period a year ago. Its revenue fell 18.1 per cent to US$68.2 million for the three months ended Jan 31, 2015, from US$83.3 million a year earlier.

Its loss per ordinary share also fell to 0.09 US cents as at Jan 31, 2015, from 1.45 US cents a year earlier. The group's net asset value per share fell to 18.1 US cents as at Jan 31, 2015, down from 24 US cents as at April 30, 2014.

The company expects to be affected by sliding iron ore prices in China, but expects China's steel exports to benefit from urbanisation and the global economic recovery.

Novo also said in its SGX filing that it expects China's rising exports and infrastructure projects to provide opportunities in the steel and raw materials trading business elsewhere in Asia.