Earnings Brief: Singapore Post Limited and Boustead Singapore Limited

Yesterday, Singapore Post Limited (SGX: S08) and Boustead Singapore Limited (SGX: F9D) released their financial results for their respective second quarters ended 30 September 2017.

Here are some quick highlights from the earnings announcements:

1. Singapore Post Limited

a) Revenue for the quarter rose 10.2% year-on-year to S$354.7 million due to growth in the Postal and Logistics segments.

b) Net profit attributable to shareholders, however, dropped 9.5% to S$28.5 million.

c) Underlying net profit, which excludes a one-off gain from the dilution of interest in an associated company during the corresponding period last year, grew 1.9% to S$27.6 million. The improvement came on the back of better performances from Postal, eCommerce, associates and joint ventures.

d) Diluted earnings per share (EPS) was at 1.09 Singapore cents for the quarter, a fall from 1.28 cents a year ago.

e) As of 30 September 2017, Singapore Post had a net debt position of S$24.6 million. The balance sheet weakened as compared to the net cash position of S$2.6 million on 31 March 2017.

f) An interim dividend of 0.5 Singapore cent per share has been declared for the quarter, down from 1.0 cent dished out last year.

g) Looking ahead, chief executive of the postal outfit, Paul Coutts, said: “Our transformation into a leader in postal and eCommerce logistics is moving ahead. The full benefits of our transformation may not be immediate, however we are investing for the long term. As we move into the next phase of our transformation, four themes will guide our focus: Winning in our home market, igniting our future growth engines in Southeast Asia and beyond, extracting full value from our investments, and driving towards cost leadership. The key to realising these opportunities is execution.”

2. Boustead Singapore Limited

a) Second-quarter revenue fell 8% year-on-year to S$104.9 million. Only the Geo-Spatial Technology business division did well for the quarter, posting a 23% rise in revenue. The other two segments, Energy-Related Engineering and Real Estate Solutions, saw their revenue slump 11% and 19% respectively. To know more about the quarterly performance of the Real Estate Solutions business, which is parked under Boustead Projects Ltd (SGX: AVM), you can head here.

b) Net profit attributable to shareholders dropped 7% to S$7.1 million.

c) Diluted EPS for the quarter came in at 1.4 Singapore cents, down from 1.5 cents last year.

d) Boustead Singapore’s balance sheet strengthened in the latest quarter. As of the end of September this year, Boustead Singapore had a net cash of S$200.8 million. In comparison, as of 31 March 2017, it had S$188.1 million in net cash.

e) Shareholders will be getting an interim dividend of 1.0 Singapore cent per share, up from 0.5 cent given out last year. The dividend was upped as the firm “delivered steady core profitability and maintained a healthy cash position”.

f) Wong Fong Fui, Boustead Singapore’s chairman and chief executive officer, said: “Even as strong headwinds persist across two of our three divisions, we continue to boost business development efforts and apply our already prudent cost management measures. Recently, we were awarded several sizeable contracts at the Energy-Related Engineering Division which helped us to replenish our division’s order book backlog.”

g) The firm’s current order book is around S$276 million, which includes unrecognised project revenue remaining at the end of the latest quarter plus the total value of new orders secured since then. Out of the S$276 million, S$101 million comes under the Energy-Related Engineering division (compared to S$72 million in the 2017 first-quarter), and S$175 million is under the Real Estate Solutions division.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P owns shares of Boustead Singapore Limited and Boustead Projects Ltd.