Hyflux first quarter profit up 30% but Tuaspring power could incur losses
It looks as if the move from engineering firm Hyflux to branch out from municipal water treatment into solid waste is starting to reflect positively in the company’s financials...
SINGAPORE – It looks as if the move from engineering company Hyflux to branch out from municipal water treatment into solid waste is starting to reflect positively in the company’s financials.
The company has reported profit after tax and minority interests (PATMI) of S$7.3 million for the three months ended 31 March 2016, a 30% increase compared with S$5.6 million in the same period last year.
Group revenue during the period rose to S$248.3 million from S$60.4 million in the same time the previous year.
Hyflux put the increase in revenue down to its TuasOne Waste-to-Energy project in Singapore and the Qurayyat desalination project in Oman.
In the first quarter, the group commenced commercial operation for the Tuaspring power plant in Singapore. However, if the current challenging market landscape of low electricity prices continues, the power plant is expected to incur losses, the company said.
It was in August last year when Hyflux started testing on the 411 megawatt combined cycle gas turbine power plant, which is co-located with Hyflux's second desalination plant (read WWi article).
Municipal projects continued to be the main contributor of the Group’s revenue, accounting for about 95% or S$238.4 million.
Singapore and Middle East and North Africa continue to be the key markets, accounting for 70% and 25% of total revenue respectively.
In April 2016, Hyflux was officially awarded a US$500 million contract to construct the Ain Sokhna Integrated Water and Power Project (IWPP) in Egypt by the General Authority for the Suez Canal Economic Zone (read WWi story).
Olivia Lum, CEO of Hyflux, said: “We remain cautious on the market due to the short-term challenges arising from depressed oil prices and slower economic growth. In the next 12 months, we will focus on executing our order book with the ongoing construction of the Qurayyat IWP in Oman, projects in the Kingdom of Saudi Arabia and the TuasOne WTE project in Singapore.”