SP Corp full-year earnings rise 32% on higher interest income

SP CORPORATION on Tuesday posted a 32 per cent rise in full-year net profit to S$2.5 million from S$1.9 million a year ago, despite a fall in revenue.

For the full year ended Dec 31, 2019, the coal trader saw its topline decrease 32 per cent to S$93.1 million due to lower revenue from rubber and coal trading.

The decrease in coal revenue was mainly due to the drop in average selling price, with a marginal decline in trading volume. The decrease in rubber revenue was mainly due to the drop in sales volume.

But earnings were buoyed by interest income, which rose 94 per cent to S$3.4 million. This was mainly due to the interest income on the loan granted to a related party on Sept 24, 2018, which was extended to mature on Sept 23, 2020.

Coal deliveries for the financial year have exceeded the quantity secured by the group under its coal-allocation agreement," said SP Corp.

"The group is exploring investment opportunities, including the project in Sanya, Hainan, China to reposition, expand and diversify its business and operations to achieve a more consistent and sustainable growth," the company said.

SP Corp shares closed flat at 50.5 Singapore cents on Tuesday.