Straits Trading H1 net loss narrows by 72.7% to S$11.1 million

[SINGAPORE] The Straits Trading Company on Friday (Aug 14) reported a net loss of S$11.1 million for the first half ended Jun 30, narrowing from a net loss of S$40.8 million in the year-ago period.

This was driven mainly by stronger performance by the group’s resources segment, and the absence of non-cash remeasurement loss on the exchangeable bonds recognised in H1 the year before.

Revenue for the half year rose 49.5 per cent to S$400 million, from S$267.5 million in H1 FY2025.

Loss per share for the period came in at S$0.024 a share, compared with S$0.09 a share in the corresponding period a year earlier.

No interim dividend was declared for H1 FY2026, unchanged from H1 FY2025, as the company does not have a standing practice of declaring dividends in the first half of the financial year.

By business segment, net profit from the group’s resources segment stood at S$12.9 million for H1 FY2026, up from S$3.5 million a year earlier.

Tin mining and smelting revenue grew to S$351.2 million from S$227.5 million previously, on the back of higher average tin prices, higher sales volume and the appreciation of the ringgit against the Singapore dollar.

The real estate segment posted a higher attributable net loss of S$16.1 million, compared with S$13.1 million in H1 FY2025. This was mainly due to the reclassification of foreign currency translation and hedging reserves to profit or loss following the disposal of certain foreign operations, as well as net foreign exchange losses.

The hospitality segment narrowed its net loss to S$127,000, from S$1.7 million in the year-ago period, on stronger operating performance and currency translation gains from a stronger Australian dollar.

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Losses in the “others” segment narrowed to S$7.7 million in H1 from S$29.4 million in the same period a year prior.

Net gearing was also reduced to 57.5 per cent as at Jun 30, from 61.8 per cent as at Dec 31, 2025.

The company noted that the global economic environment is expected to remain uncertain due to geopolitical tensions, high interest rates and currency market volatility.

“The outlook remains closely tied to developments in the energy market. As a result, interest rates in major developed markets are likely to stay above historical levels, and the possibility of further increases cannot be ruled out,” it noted on Friday.

“These conditions may continue to constrain credit availability and investment appetite in certain sectors.”

The group also said demand for tin from clean energy, electronics and artificial intelligence-related applications is expected to “remain strong”, though supply conditions remain sensitive to regulatory and policy developments in key producing countries.

Where appropriate, it will also continue to manage currency and market risks to support the stability of its financial performance as well, the company added.

Chew Gek Khim, the group’s executive chairperson, said real estate is working through a “difficult market”, which the company is managing.

“We have taken the opportunity to reduce debt and direct capital to its best uses,” she added.

The counter closed unchanged at S$1.62 before the release of the financial results.