Sinwa reports 22% increase in Q2 earnings to S$2.6 million

Energy, Logistics, News, Ship Agencies, Ship Supplies — By on August 5, 2015 at 3:44 PM
Bruce Rann

Bruce Rann

SINWA, Asia Pacific’s leading marine, offshore supply and logistics company, has announced further impressive financial results for it’s 2nd quarter ended 30 June 2015. By Jeanius Consulting

The Group reported a 7.4% year-on-year increase in total revenue to S$40.8 million for 2Q2015.

This was due to the growth in customer base and increased sales volume from existing customers for the marine and offshore supply business. Gross profit also increased by 7.7% year-on-year to S$9.7 million, in line with revenue growth with gross profit margin remaining relatively constant at 23.8%. The Group’s net profit attributable to equity holders increased 22.0% to S$2.6 million in 2Q/2015. Total net profit for the first six months of the year now stands at $4.85m. The Group will be paying a special dividend of 2.25 Singapore cents per share to its shareholders

Commenting on the Group’s business outlook, Bruce Rann, Group CEO of Sinwa, said,

“We have continued our strategy to streamline our business model and focus on our core marine, offshore supply and logistics business. It has been validated over the last two quarters and shown its effectiveness despite a slow recovery in the shipping industry. The current outlook in the offshore oil and gas industry remains bearish. As a result, the effects of capital expenditure cuts and fallen margins have been impressed upon the offshore and marine industry and it is facing a situation of lower demand. However, the adversities in the market will not divert us away from our long-term strategy.”

With a network of 13 locations in Singapore, Australia, China and recently added Thailand, serving well over 100 Asia Pacific ports, Sinwa has continued to grow its market share in the supply of a wide range of equipment and provisions to the marine and offshore industry, as well as providing a full and comprehensive range of shipping agency, logistics, warehousing and related support services.

Looking to the future, Bruce Rann added; “Our core business has shown great resilience and our management and staff have displayed strong proficiency in response to the headwinds faced. We will remain watchful of any developments in the marine and offshore industry and regularly review our business operations to continue the momentum of our progress. Our operations in Thailand have commenced this year and we look forward to the myriad of opportunities it presents. Moreover, we will stay focused and springboard ourselves to further expand our client base and business in the Asia Pacific region. We will take a conservative and methodical approach to do our utmost to place ourselves in a prime position when the market recovers.”

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