Tee International's Q3 net loss widens to S$6.4 million

MAINBOARD-LISTED Tee International's net loss widened to S$6.4 million for its third quarter ended Feb 28, from a S$4.1 million loss during the same period a year earlier, it said on Monday.

The higher net loss came as revenue fell by more than half to S$46.7 million for the three months, from S$100.6 million a year earlier. The company said this was mainly due to substantial completion of a major project and slowdown of project progression due to Covid-19.

During the quarter, the group also reported a gross loss of S$2.1 million, mainly due to its engineering and construction segment, Tee International said. However, it noted that its environmental business and rental income from its investment properties "remains stable, healthy and have positive contribution to the group".

For the nine months ended Feb 28, Tee International's revenue was down 58.4 per cent to S$113.6 million. The group recorded a net loss of S$5.4 million for the nine months, from a loss of S$41.8 million a year earlier.

The higher losses from a year earlier included losses from discontinued operations of S$31.2 million, relating to the disposal of its entire stake in Tee Land in February 2020.

In terms of outlook, Tee International said its engineering and construction business "remains challenging".

It said that manpower deployment for engineering and construction projects would continue to be affected in the near term as higher cost and time resources are required to comply with Covid-safe management measures. It added that the supply chain for materials may be disrupted due to the evolving Covid-19 situation in the region.

"As a result, costs to complete the construction projects may be impacted," Tee International said. "The group will continue to take all necessary steps to monitor and contain the project cost for ongoing projects."

As at end-February, the group's engineering and construction order book stood at S$218.2 million.

For its environmental business, Tee International said it plans to expand into the municipal solid waste sectors by actively participating in the upcoming tenders for public waste collection, where it has already been pre-qualified to bid for these tenders.

Net asset value for the group stood at 2.6 Singapore cents as at end-February, down from 3.4 cents in May 2020.

Tee International shares fell 2.1 per cent or 0.1 Singapore cent on Monday to close at 4.6 cents before the announcement.

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