Penguin International H1 net profit down 28.5% to S$6.1 million
PENGUIN International posted a 28.5 per cent drop in net profit to S$6.1 million for its first half ended Jun 30, 2023, from S$8.5 million in the previous corresponding period.
This was due to net foreign exchange losses of S$1.4 million recorded during the period, compared to the net foreign exchange gain of S$1.2 million in the year-earlier period, as well as higher marine insurance costs arising from more vessels being added to the group’s operating fleet, said the shipbuilder in a bourse filing on Wednesday (Aug 9).
Earnings per share stood at 1.10 Singapore cents for the half year, down from 3.11 cents in the previous year.
Revenue for the first half grew 44.9 per cent to S$89 million, from S$61.4 million a year earlier. The company attributed this mainly to an increase in the number of build-for-stock vessels sold and an increase in chartering activities over the period.
No dividend was declared for the half year, unchanged from the year before. This is because the group intends to conserve cash for its fleet and shipyard expansion projects.
“While supply chain disruptions have largely subsided, rising costs of labour, equipment and materials, as well as stiff competition from other shipbuilders have continued to rein in shipbuilding margins,” said the group. “The company expects the market dynamic to remain the same for the foreseeable future.”
Shares of Penguin closed at S$0.83 down S$0.005 or 0.6 per cent on Tuesday (Aug 8).
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