Property sale helps TWC to profit

Tiong Woon's turnover from heavy lift and haulage is down by 24% year on year to SGD22.41m, from SGD29.39m. Turnover from fabrication and engineering was down by 94% to SGD923,000 from SGD16.76m. Trading turnover fell 85% to SGD696,000, from SGD4.7m. The one regularly reported segment where TWC registered growth was marine transportation, up 121% year-on-year to SGD4.2m.

The company said, “The group registered a turnover of SGD28.4m for the third quarter ended 31 March 2010, representing a decline of 46% over the SGD52.8m recorded for the same period in the previous year. The group’s revenue was mainly derived from our operations in Singapore, India, Philippines and the Middle East. Turnover from the heavy lift and haulage segment dropped mainly due to a decrease in contribution from Thailand, Indonesia, China and Singapore. The group also experienced a drop in the utilisation rate for its lower tonnage capacity cranes.

“Turnover from the marine transportation segment increased as a result of two new charter contracts of significant value. One of these contracts has a charter period for one year and the other, which required cross charter from third party, ended in March 2010.

“The fabrication and engineering segment registered a decrease of 94% compared to the previous corresponding period. The much higher turnover for third quarter last year was primarily due to the recognition of revenue from the derrick pipe-lay barge.

“Turnover from the trading segment decreased as the group sold fewer cranes compared to the previous corresponding period.”

Tiong Woon announced the completion of the sale of 13 Pandan Crescent, close to the Pasir Panjang container terminal and Jurong Island, home of many petro-chemical facilities, on April 1. The property was sold to Dyna-Mac Engineering Services Pte Ltd.

The company's turnover from its four regularly reported segments was SGD28.35m. Cost of sales was SGD20.83m, leaving a gross profit of SGD7.52m. Other expenses (administration, other operating, and finance) totalled SGD7.97m: equivalent to a loss for the quarter of SGD450,000.

However, SGD12.08m of other income, not normally recorded, including the SGD10.6m gain from the property sale, allowed TWC to record profits before income tax of SGD11.63m. A spokesman explained that, “The company felt the sale price was attractive and presents an opportunity to realise the property at a good value. The net proceeds would be used for general working capital purposes and other funding requirements of the group.”

TWC used to occupy two properties in the area, 13 and 15 Pandan Crescent. They have now moved their HQ to15 Pandan Crescent. In addition to Singapore facilities, the company also has facilities in China and Indonesia.