Rises and falls at Tiong Woon

Tiong Woon (TWC) posted slightly lower profits in its 2012 first quarter results, ending 30 September 2011, but revenues were on the rise thanks to new projects.

The Heavy Lift and Haulage segment of the oil & gas and petrochemicals service provider contributed most of the revenue, amounting to S$ 25 million (US$ 19.4 million), up 8% from the previous quarter. This was mainly due to an increase in integrated projects in the Asia Pacific region for the Singapore-based company, fully named Tiong Woon Corporation Holding Ltd.

Profit before tax stood at S$ 1.9 million ($1.5 million), representing a drop from the 2011 first quarter figure of S$ 2.5 million ($1.9 million). The latter figure included a gain on disposal of plant, property and equipment totalling S$ 1.5 million in the first quarter of 2011, said the company, but there was no such gain in the 2012 corresponding quarter.

The Marine Transportation segment saw turnover grow 43% to S$ 3.8 million ($2.9 million), resulting from a number of significant charter contracts executed in the quarter and an increase in its utilisation rates. Its contribution to profit before tax was S$ 0.01 million relative to S$ 0.3 million ($0.233 million) mainly due to currency translation differences.

Ang Kah Hong, group chairman and managing director, said the results were satisfactory given the challenging business climate. "We have ongoing projects and also a few new ones secured recently, and we will focus on executing these well. At the same time, we continue to prospect vigilantly for new business opportunities."

Since the figures were released TWC announced it would set up a representative office in Myanmar and would supply cranes and marine transport to a pipeline laying project contract in the country for an India-based conglomerate.

Ang added the ongoing debt crisis in Europe and weak economic growth in the USA seemed to have a negative impact on global economic growth and stability. "Against such a backdrop, business conditions for the group will continue to be challenging. The competitive environment motivates us to work much harder and compels us to watch our costs and expenses more vigilantly."

Ang said the group would continue to be active in its key markets in South East Asia, India and the Middle East. It posted a total revenue of S$36.0 million, up 25% from S$28.8 million in the previous corresponding quarter, and announced a net profit after tax and non-controlling interest of S$1.0 million, compared to S$1.3 million previously.