SIIC Environment Q3 revenue falls 4.1% on construction revenue decline

SIIC Environment Holdings' third-quarter revenue fell by 4.1 per cent to 1.51 billion yuan (S$307.6 million) due to a 25.7 per cent drop in construction revenue.

Net profit rose 9 per cent to 163.5 million yuan for the third quarter ended Sept 30, from 150 million yuan a year ago, the China water treatment and environmental protection company said in a bourse filing on Friday.

Earnings per share stood at 6.28 fen for the quarter, up from 5.76 fen a year ago.

The group's construction revenue fell 25.7 per cent to 464.7 million yuan on the year, from 625.4 million yuan, mainly due to a relatively lower amount of construction activities in progress as compared to the previous year and the Covid-19 outbreak in China during the first half of the year which delayed construction progress, it said.

However, operating and maintenance income and financial income from service concession arrangements rose 8.5 per cent to 954 million yuan as a result of the rise in both wastewater treatment volume and treatment tariff.

SIIC Environment's cost of sales narrowed to 946.5 million yuan from 1.06 billion yuan a year ago, while finance expenses narrowed to 171.2 million yuan from 181.5 million yuan the year before.

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No dividend was declared for the quarter, unchanged from a year ago.

SIIC Environment chief executive Xu Xiaobing said: "Facing the favourable national policies for environmental protection industry, we are still positive towards the investment upside and efficiency improvement of the environmental protection market while remaining steadfast and optimistic about the prospects and opportunities of the group and the industry."

Shares of mainboard-listed SIIC Environment were trading 6.7 per cent or 1.2 Singapore cents higher at 19.2 cents as at 9.54am on Monday.