SINGAPORE – The announcement that the planned Qurayyat desalination development in Oman could come online in the second half of this year was perhaps the only positive news to come out of Hyflux’s half year results.
The company reported a loss of S25.1 million for the second quarter of 2017, after tax and minority interests, compared to a profit of S$2.6 million in the same period last year.
The majority of this loss - S$20.9m - stemmed from the Tuaspring Integrated Water and Power Plant, due to “weak power spreads in the Singapore market”. As a result, Hyflux expects losses in the next two quarters.
For the Qurayyat development, the Singapore firm said this is scheduled to commence operation in the second half of the year, following testing and commissioning.
The 200,000 m3/day project worth US$250 million, awarded on a design, build, own and operate basis was originally scheduled to commence operation by May 2017, so the start date is later than expected.
Elsewhere, contract negotiation is ongoing for the company’s Ain Sokhna Integrated Water and Power Plant in Egypt, although progress is “slower than expected”, the company said.
In its half yearly results, the company said: “To strengthen its infrastructure business, the group is leveraging on its leadership position in the water sector by exploring opportunities including the option of strategic partnerships and investors.”
The group’s consumer business, in which it diversified into from municipal projects, has “generated good growth” and, as a result, Hyflux said it is exploring a separate listing.