Tiong Woon’s revenue surges 36% to S$75m in 1H12

Revenue for its Marine Transportation segment grew the most at 86% to S$5 million in 2Q12.

Tiong Woon Corporation Holding Ltd announced its results for its first half 2012, with a 36 per cent increase in revenue from S$54.7 million to S$74.6 million for the six months ended 31 December 2011. The increase in turnover was due to the overall rise in revenues from all of the Group’s business segments.

Tiong Woon recorded a net profit after tax attributable to shareholders of S$1.2 million compared to the S$1.8 million previously translating to earnings per share of 0.33 Singapore cent.

Second quarter (2Q2012) review
On a quarterly basis, the Group saw a 49 per cent increase in turnover to S$38.6 million, up S$12.7 million for the three months ended 31 December 2011, also due to increase in sales in all business segments. Despite the higher revenue, PATMI for the quarter was S$0.2 million compared to S$0.5 million for the corresponding quarter. The dip was due mainly to exchange losses, higher wage and subcontractor costs and equipment rental fees.

Segmental performance
The Group’s Heavy Lift and Haulage segment saw its revenue increase by S$6.6 million or 29 per cent to S$29.1 million, due mainly to a rise in the number of integrated projects undertaken in the Asia Pacific region. It recorded a profit before tax of S$0.2 million compared to S$1.0 million in the previous corresponding quarter. Despite its higher revenue, the segment recorded a lower PBT in the three months ended 31 December 2011 as there was an exchange loss of S$1.3 million as compared to an exchange loss of S$0.3 million for the previous corresponding quarter.

Revenue for Marine Transportation segment was up by S$2.2 million, or 86 per cent to S$4.7 million for the second quarter ended 31 December 2011 as a result of several significant charter contracts executed in the quarter and an increase in its utilisation rates.

PBT from the Marine Transportation segment for the second quarter ended 31 December 2011 remained consistent at S$1.0 million with the same quarter in the last financial year, despite the increase in turnover. This was mainly due to a gain of S$0.4 million on disposal of barges in the previous corresponding quarter.

Revenue from the Fabrication & Engineering segment was also up. It saw a rise of S$2.2 million or 280 per cent to S$3.0 million for the second quarter ended 31 December 2011 compared to the previous corresponding quarter, due mainly to revenues from several engineering projects. Despite the strong revenue growth, the segment registered a loss of S$1.6 million. This was mainly attributable to the higher subcontractor and equipment rental costs incurred during the quarter.

The Group’s Trading segment saw an increase in revenue to S$1.8 million for the second quarter ended 31 December 2011 compared to S$0.1 million in the previous corresponding quarter as it sold a few cranes during the period; none were sold in the same quarter in 2010. The segment recorded a profit before tax of S$0.01 million for the second quarter ended 31 December 2011 as compared to a loss of S$0.06 million previously.