Tiong Woon posts record half-year results

By Euan Youdale12 February 2009

Heavy lift and haulage specialist Tiong Woon Corporation Holding (TWC), based in Singapore, has achieved record profits in the first six months of its current financial year.

Net profit after tax and minority interest totalled S$23.1 million (US$15.3 million) for the half year to 31 December 2008. This represented a 119% increase over the S$10.6 million (US$7 million) for the previous corresponding period.

Group turnover was S$95.5 million (US$63.2 million), 45% higher than its previous record of S$65.8 million (US$43.6 million) in the first half of 2007-2008 full year. Profit before tax was also at an all-time-high of S$28.4 million (US$18.8 million), up 121%. Earnings per share stood at 6.8 cents against 3.1 cents over the same period in 2007.

The growth was fuelled largely by an increase in revenue from TWC's heavy lift and haulage segment, fabrication and engineering segment and trading segment, which together made up 93% of total revenue, said the company.

The heavy lift and haulage segment contributed S$64.4 million to group turnover, a 46% increase on the first half of the previous year. This was mainly due to increased activities in Asia and the Middle East. The segment's profit before tax was up by 130%, climbing to S$26.2 million (US$17.4 million). This, said TWC, resulted from higher turnover derived from cost control measures put in place for these projects.

Geographically, activities at home continued to lead growth and accounted for 59% of group turnover, edging up from 57% previously. Indonesia contributed 16% to revenue and Thailand 7%. The balance came from operations in Asia and the Middle East.

The company remained cautiously optimistic on the outlook for the oil and gas and petrochemical sector in the region, which will be the group's focus for growth in the coming months. "Despite current economic and market challenges, we have a strong team at the helm and a pool of professional and service-orientated staff members. Our financials are sturdy and, coupled with a wide range of products and services, we remain positive about TWC's future and our ability to navigate through this slowdown," said Ang Kah Hong, group chairman and managing director.

"Going forward, the group will continue to build on its strengths. lifting and haulage will be its main driver of growth and we will also actively expand our geographical footprint. We will also look to growing our distributorship and agency services in markets such as Asia and the Middle East," Ang added.

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