Rises and falls in tough year for Tiong Woon
By Euan Youdale11 May 2012
Tiong Woon posted a 40% increase in revenue for the nine months ending 31 March 2012, despite a difficult year so far.
Revenue at the Singapore-based oil & gas and petrochemical service provider rose to S$109.7 million (US$87.7 million) from S$78.4 ($62.4 million) recorded in the same nine month period in 2011, thanks to increases in all the group's segments.
"The trend in revenue performance is encouraging in that overall utilisation rates of our cranes are healthy," said Ang Kah Hong, group chairman and managing director.
"Overall, the quarter has been a fairly trying one. Nonetheless, we continue to work hard not only in the execution of our existing projects but also in our pursuit of more contracts. We expect market conditions to be challenging with the still uncertain global economic outlook and the continuing Euro-zone debt crisis."
Tiong Woon's turnover increased 48% to S$35.1 million ($28 million) from S$23.7 million ($19 million) for the third quarter. The group's Heavy Lift and Haulage segment saw its revenue increase by 35% to S$27.6 million ($22 million) in its third quarter mainly thanks to a rise in integrated projects in the Asia Pacific region.
Despite this, profit before tax (PBT) was down at S$1.3 million ($1 million) compared to S$2.2 million ($1.8 million) in the previous corresponding quarter.
Revenue for Marine Transportation segment more than doubled to S$4.7 million ($3.8 million) during the third quarter from S$2.3 million ($1.8 million) previously, as a result of significant charter contracts. PBT was S$0.9 million ($0.7 million) compared to a loss of S$0.8 million ($0.6 million) in the previous corresponding quarter.
Revenue from the Fabrication & Engineering segment was also up. It saw a rise of S$1.7 million ($1.4 million), or 479%, to S$2.1 million ($1.7 million) in the third quarter. But the segment registered a loss of S$3.3 million ($2.6 million) in the quarter, attributabed to higher subcontractor and equipment rental costs.
Revenue for the group's Trading segment held steady at S$0.7 million ($0.6 million) for the third quarter. It sold three lower-tonnage cranes during the period compared to one higher capacity crane sold in the previous corresponding quarter.
Going forward, conditions will remain challenging. "The group continues to face increased competition, an aggressive pricing environment and higher costs, resulting in pressure on margins," said a company spokesman. "The group will continue to streamline and strengthen its operations and exercise financial prudence to ensure that it operates in a cost-effective and efficient manner."
Tiong Woon will continue to be active in its key markets, including, Singapore, Thailand, China, Indonesia, Vietnam, India, Malaysia and the Middle East in the power generation sector.