SINGAPORE: Lower sales to customers in the energy sector hit fourth quarter earnings at CosmoSteel Holdings.
Net profit for the three months fell 49.3 per cent compared with the same period last year, to S$1 million . Revenue dropped 41.6 per cent to S$24.2 million.
Earnings per share came in at 0.37 Singapore cents, down from 0.76 Singapore cents last year. Net asset value per ordinary share was 42.23 Singapore cents as at Sept 30, down from 40.56 Singapore cents as at Sept 30 last year.
Looking ahead, the group said it expects generation of revenue to “continue to remain challenging” amid the weak oil market. There would likely be fewer projects available in the market, it added.
“Profit margin is expected to continue to come under pressure from the intensifying competitive conditions locally and globally,” it said in a statement.
Chief executiveOng Chin Sum said, “We believe the solid track record and strong customer relationships we have built over the last three decades, combined with the significantly enhanced global footprint, customer base and product range from our strategic partner Hanwa Co. Ltd, will hold us in good stead as we ride out this industry downcycle.”
