Published August 27, 2009

Tiong Woon's net profit surges 51% to $42m

Revenue up 28% to $202m, boosted by heavy-lift & haulage

By JAMIE LEE
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TIONG Woon Corporation's full-year net profit jumped 51 per cent, thanks to strong sales.

The construction specialist company posted a net profit of $42.3 million for the 12 months ended June 30, up from $28 million a year ago.

This translates to earnings per share of 12.54 cents, up from 8.28 cents for FY2008.

Revenue rose 28 per cent to $202.3 million from $157.8 million, boosted by turnover from its heavy-lift and haulage division.

The division - its strongest unit in terms of sales - enjoyed a 32 per cent leap in turnover to $130.6 million from $99.2 million, mainly due to the increase in integrated projects that the company undertook in the Asia-Pacific, especially in Indonesia, Brunei and India.

Turnover of its fabrication & engineering unit surged 78 per cent to $47 million from $26.4 million, thanks to a higher percentage of revenue recognition from its first derrick pipe-lay barge project. Such barges have a crane and pipe-laying equipment for offshore construction work.

But turnover from its trading segment dropped 30 per cent to $13.8 million as the group sold fewer cranes.

Revenue from its marine transportation unit also slipped 13 per cent to $10.9 million, caused by a drop in utilisation rate and fewer integrated haulage and marine projects.

Operating cash jumped to $30.5 million from $5.81 million.

However, cash in financing activities stood at a negative $9.46 million, compared with a positive cashflow of $37.1 million previously, due to lower proceeds from borrowings and higher repayment of borrowings.

Total cash stood at $16.8 million, against $16.6 million a year ago.

The company also declared a final dividend of 0.4 cent per share.

Tiong Woon said in its financial statement that in the near term, it was 'cautiously optimistic' on the outlook for the power generation, oil-and-gas and petrochemical sectors in places such as China, Thailand and Middle East countries. It will also seek strategic alliances with business partners when appropriate.

Shares of Tiong Woon gained one cent to end at 70 cents yesterday.