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Straits Trading Q4 net profit more than doubles to S$14.1m
STRAITS Trading's net profit for the fourth quarter ended Dec 31 more than doubled to S$14.1 million, translating to an earnings per share of 3.5 Singapore cents, up from a restated 1.3 Singapore cents a year ago.
Revenue dipped 1.7 per cent to S$104.7 million due to a 7.8 per cent fall in tin mining and smelting revenue to S$94.9 million, though this was partially offset by a rise in revenue from its enlarged property portfolio to S$9.8 million from S$3.5 million.
The group recorded an increase of 43.7 per cent in fair value of its investment properties to S$10.2 million, driven by fair-value gains from properties in Australia. Costs of tin mining and smelting fell 20.1 per cent to S$80.5 million.
The company has proposed an interim dividend of six Singapore cents per share, unchanged from the year before, which is payable on May 3.
The group said that 2019 is set to be yet another challenging year. "Geopolitical uncertainties, unease over the state of the global economy and pressures from rising interest rates continue to cast a shadow on the business environment. However, there remains pockets of opportunities for us to capture," it said.
"We will be cautious and especially selective with our investment opportunities. We will continue to take a disciplined approach in making investments with a deliberate longer-term view, which may result in slightly more muted returns in 2019."
The counter closed at S$2.16, up S$0.01 before the results were released.