STRAITS Trading Company has reported a 64.9 per cent drop in net profit to S$5.2 million for the six months ended Jun 30.
The investment company reported in a bourse filing on Monday (Aug 12) that revenue was up 7.1 per cent at S$252.5 million, mainly due to fair-value gains in its logistics properties located in South Korea and Australia, and its properties in Singapore.
This was offset by an increase in expenses for its resources segment, with the cost of tin mining going up 19.2 per cent to S$192 million from the maintenance of a furnace that began in May, and despite more revenue having come in from higher-than-average tin prices.
“Other losses” rose to S$5.8 million, reversing a gain of S$19.2 million in the year-ago period as a result of the disposal of an investment property in Australia and lower fair-value gain on embedded derivative components of exchangeable bonds.
Expenses also grew as its hospitality segment, Crowne Plaza Penang Straits City, stepped up operations in preparation for its opening in August.
Earnings per share dipped to 1.2 Singapore cents from 3.3 cents. No dividend was declared for the period.
The group said that while the current environment is marked by escalating trade tensions and policy uncertainties, its balance sheet remains robust, with S$476.3 million in cash and bank balances.
Shares of the company closed Monday up 0.8 per cent, or S$0.01 at S$1.30.
