GSS Energy's precision engineering business, which performed well in 2016, strode to a higher level in 1Q17.
|
S$’m |
1QFY17 |
1QFY16 |
Change |
|
Revenue |
21.7 |
16.9 |
28.3% |
|
Gross profit |
5.1 |
4.0 |
26.4% |
|
Gross profit margin |
23.5% |
23.8% |
|
|
Net profit after minority interests |
1.03 |
0.67 |
55.5% |
Revenue grew by 28.3% y-o-y to S$21.7 million, entirely accounting for GSS Energy's revenue while its oil & gas business entered into a pre-revenue phase.
The Group’s increased business activities resulted in a slight increase in overall operating expenses, which increased by S$ 0.5 million to S$ 3.7 million in 1Q2017, due to vigilant cost controls including streamlining of operations.
The O&G business incurred a net loss of S$0.9 million in 1Q2017 due to pre-operation and related expenses.
With the S$ 1.9 million profit contributed by the precision engineering business, the Group’s net profit rose by 55.5% to S$ 1.03 million.
 “We are very pleased with our solid performance in the first quarter of 2017. Our precision engineering business is on a steady growth path driven by our focus of working closely with existing customers for higher-value products, success with new customers and better operational coordination and collaboration amongst our factories in Indonesia, Singapore and China. This is reflected in the 32.9% y-o-y increase in net profit and our solid balance sheet and strong cash position."-- Sydney Yeung, CEO of GSS Energy (NextInsight file photo) |
The Group’s balance sheet remains robust.
The Group held a net cash balance of S$11.4 million as at 31 March 2017.
The Group is confident of further growth in its precision engineering business.
Its new factory in Changzhou, China will be operational by mid-2017 and will focus on higher-value products with its expanded capacity, including taking on electronic manufacturing services.
At the same time, the Group is actively exploring business potential in related areas through acquisitions and/or strategic and operational arrangements.
As announced in Nov 2016, the Group’s O&G segment has successfully entered into the Operation Cooperation (Kerja Sama Operasi) Agreement with PT Pertamina EP.
Preparations to commence production drilling in the Trembul Operation Area are well advanced.