SINGAPORE - Higher profit margins and a gain from the sale of subsidiaries helped Tiong Woon Corporation Holding raise full-year earnings despite a dip in revenue.
Mainboard-listed Tiong Woon - which provides integrated services primarily for the oil and gas, petrochemical, infrastructure and construction sectors - said yesterday that net profit rose 25 per cent from levels posted a year ago to $22.1 million for its 2014 financial year.
However, turnover slid 18 per cent to $165.3 million for the 12 months ended June 30 as all four business segments - heavy lift and haulage, marine transportation, engineering services and trading - logged lower revenues because of thinner demand.
Tiong Woon managed to counter the revenue drop by lowering its cost of sales, which allowed it to register better profit margins, the firm said.
This - combined with a $3.2 million gain on the disposal of its wholly owned units Tiong Woon Oil & Gas Services and TWC Bintan in October last year - boosted net profits.
The group's earnings per share rose to 4.75 cents for the full year, from 3.79 cents for the previous year.
With discontinued operations excluded, earnings per share would have fallen to 4.07 cents from 4.23 cents.
Net asset value per share rose to 56.04 cents as at June 30, from 51.22 cents a year ago.
"(The 2014 financial year) has been challenging," said group chairman and managing director Ang Kah Hong. "The group took the opportunity to realign its business strategy accordingly, and has strengthened as a result of the restructuring."
He said Tiong Woon will "continue to actively pursue new business opportunities in the oil and gas and petrochemical sectors across the region, while striving for improvements in operational efficiency, cost control and financial management".
Tiong Woon shares closed one cent up at 34 cents yesterday.
This article was first published on August 22, 2014.
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