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TEE Intl sinks deeper into the red in Q2 on TEE Land loss

TEE International saw its net loss widen to S$35.9 million for its second quarter ended Nov 30, 2019, from a loss of S$3.2 million a year ago.

This mainly due to a S$13.8 million loss from a discontinued operation relating to its subsidiary TEE Land, the mainboard-listed engineering group said in a filing late on Tuesday night. TEE International on Monday proposed to sell its 63.2 per cent stake in TEE Land for S$50.6 million to a unit of Malaysia's Amcorp Group.

Based on continuing operations, the group's loss per share stood at 3.79 Singapore cents for the quarter, from a loss per share of 0.31 cent a year ago.

Revenue for Q2 more than doubled to S$97.5 million, from S$40 million a year ago, mainly due to higher contribution of progressive revenue from ongoing engineering projects.

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Other operating expenses widened to S$22.5 million from S$386,000 a year ago, primarily from recognising an impairment based on estimated fair value less cost to sell, in relation to the proposed TEE Land share disposal.

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

For the half year ended Nov 30, 2019, net loss widened to S$37.8 million from S$7.5 million the year prior, while revenue more than doubled to S$172.2 million from S$84.6 million a year ago.

TEE International shares closed at S$0.057 on Tuesday, down 0.7 cent or 10.9 per cent, before the results were announced.