TEE Intl sinks deeper into the red in Q2

Singapore

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

This was 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. This came a day after the engineering group said it had inked a deal 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, TEE International's loss per share worsened to 3.79 Singapore cents for the quarter, from 0.31 cent previously.

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

Other operating expenses widened to S$22.5 million from S$386,000 a year earlier, 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, net loss widened to S$37.8 million from S$7.5 million.

This was despite revenue more than doubling to S$172.2 million from S$84.6 million previously, due to higher contribution of progressive revenue from ongoing engineering projects in the first half.

Looking ahead, the group said its engineering order book stood at around S$286 million as at Nov 30. One of its subsidiaries' BCA grading has also been temporarily downgraded, pending completion of its statutory audit.

For its infrastructure business, the group said it would continue to explore opportunities to divest its investment in existing assets. Its infrastructure team remains focused on improving operational efficiency for the environment business, it added.

TEE International shares closed 0.1 Singapore cent, or 1.8 per cent, lower at S$0.056 on Wednesday.