YHI International - nine-month net profit slips 67.6% to S$5.6m
Challenging business environment blamed for weak demand.
Singapore Exchange Mainboard-listed YHI International Limited (YHI) reported revenue of S$389.2 million for the nine months ended 30 September 2013 (9MFY2013) and a net profit attributable to equity holders of the
company (net profit) of S$5.6 million.
This compares with the revenue of S$414.2 million and net profit of S$17.3 million in the same period last year (9MFY2012), or a 67.6% decline in net profit.
The global business environment continued to be challenging as consumers are more cautious towards spending on discretionary automotive products amid a weak global economy. As a result, demand for the Group’s products in both the distribution and manufacturing segments remained weak for the period under review.
Revenue from the distribution segment, which makes up of 72.1% or S$280.7 million of the total revenue, remains as the main contributor of the Group’s turnover in 9MFY2013. The manufacturing segment, which makes up the balance of 27.9% registered a revenue of S$108.5 million for the period.
Gross profit for 9MFY2013 decreased by 12.9% from S$95.1 million in 9MFY2012 to S$82.8 million, was mainly attributable to lower turnover and gross profit margin for both distribution and manufacturing businesses. The Group’s gross profit margins declined to 21.3% from 22.3% in tandem with lower margins from the distribution and manufacturing business segments as competition for both segments intensified during the period.
Total operating expenses of the Group in 9MFY2013 were slightly up as compared to the same period last year. Distribution expenses rose about 6.2% to S$36.8 million in 9MFY2013 compared to S$34.7 million in the corresponding period last year mainly due to higher staff costs to boost its marketing activities.
However, the increase in distribution expenses were partially offset by a decrease in its administrative costs and financing costs, which were mainly due to the lower bonuses accrued and lower borrowings in certain subsidiaries for the period respectively.
Earnings per share were 0.95 Singapore cent for the nine months ended 30 September 2013 compared with 2.66 Singapore cents last year.
Executive Chairman and Group Managing Director, Mr Richard Tay said: “The outlook of the global economy continues to be uncertain despite the improved economic data of China and the USA and competition has intensified for both our distribution and manufacturing segments. In response to these uncertainties in the business environment, we will continue to hold a tight rein on our operating costs and stepping up on our marketing efforts to widen and strengthen our products, business networks and manufacturing capabilities. This is in line with our strategic move to lay a firm foundation for our businesses, so as to stay ahead of competition when the global economy turns for the better."
Moving forward, the global economic outlook remains uncertain. While the economic data of China and the USA have shown signs of improvements, consumer demand from Europe still remains relatively weak.
"Looking ahead, the Group will continue to focus on strengthening our business network on a global basis to grow our business, intensifying our brands building efforts, continual product and design innovation, and improving our production systems to enhance quality, productivity and reduce operating costs to stay competitive in the marketplace.", added Mr Tay.
RH PetroGas - UPDATES ON THE ZIRCON-1 EXPLORATION WELL IN SALAWATI KEPALA BURUNG PSC (“ISLAND PSC”), INDONESIA
The Board of Directors of RH Petrogas Limited (the “Company”) refers to its announcement(SGXNET Announcement No. 52) issued on 25 September 2013 and wishes to provide an update on the drilling of the Zircon-1 exploration well (“Zircon-1”) in the Salawati Kepala Burung PSC (“Island PSC”), Indonesia.
As announced on 25 September 2013, Zircon-1 reached its total vertical depth of 1,525 meters. The well encountered several oil shows and, after log analysis, drill stem tests (“DST”) were performed on 4 zones to confirm the presence of hydrocarbon. Preliminary assessment of the DST results indicated that, despite oil shows, hydrocarbons were not recovered in the well. The Company and its partners will conduct post mortem analysis of the well to further evaluate the Zircon structure.
The well will be plugged and abandoned (“P&A”) in accordance with the drilling program. After the P&A operation of Zircon-1, the Bohai-8 drilling rig will be moved to Koi-2 appraisal well’s location to appraise Koi-1, an earlier discovery which tested 980 BOPD (barrels of oil per day) and 2.70 MMSCFD (million standard cubic feet per day) of gas in year 2000.
Mr Francis Chang, Vice President Exploration and Production said, “We are optimistic about the potential for the Koi structure which can potentially be developed on a stand-alone basis if commercial quantities of oil can be confirmed. There are numerous other analogous prospects identified in the 3D area offshore Island PSC and the Company will continue to evaluate them to
identify potential drilling targets in the future.”
The Company through its wholly owned subsidiaries Petrogas (Island) Ltd. and RHP Salawati Island B.V. has an aggregate 33.21% working interest in the Island PSC. The other partners in the Island PSC are PetroChina International Kepala Burung Ltd. (16.79%) and PT Pertamina Hulu Energi Salawati (50%). The Island PSC is operated by JOB Pertamina-PetroChina Salawati, which
is a joint operating body formed between Pertamina and PetroChina. The consortium, as contractor of the Indonesian government, operates under the supervision of SKK Migas (Satuan Kerja Khusus Minyak dan Gas).
Straits Trading: Post 3Q13 Net Profit Of S$37.4 Million Vs 3Q12 Net Loss Of S$4.1 Million.
15 Nov 2013 10:12
The Straits Trading Company Limited has posted a profit after tax and non-controlling interests of $37.4 million for the third quarter of 2013, compared to a loss after tax and non-controlling interests of $4.1 million in the same quarter a year ago. The 30/70 hospitality joint-venture, Far East Hospitality Holdings, is now fully operational, with a hospitality portfolio of over 13,000 rooms across 25 locations worldwide...
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