Hyflux Profit Increases More Than Threefold After Asset Sales

Aug 08, 2014 7:07 am ET

Aug. 8 (Bloomberg) -- Hyflux Ltd., Singapore’s largest publicly traded water company, reported that second-quarter profit increased more than threefold after asset disposals.

Net income rose to S$61.4 million ($49 million) from S$17.7 million a year ago, while revenue was $80.6 million from $138.4 million, according to a statement. The cash position was S$481 million on June 30 from S$243.9 million on Dec. 31, while net gearing improved to 0.54 times from 1.15 times.

Hyflux said it expected this half to remain slow given the mixed global economic outlook and a delay in connecting the national power grid to its Tuaspring plant in Singapore. The company’s stock dropped 0.9 percent this year, lagging behind the 3.8 percent gain in the benchmark Straits Times Index.

“We have taken the initiative to strengthen our financial position in support of our growth strategy through the issuance of capital securities and divestments,” Chief Executive Officer Olivia Lum said. “This puts us in a strong position for the rebound we expect to see in the global water industry.”