Written by The Edge
CWT, the provider of integrated logistics solutions, announced a net profit attributable to owners of $155.4 million for the three months ended 30 June 2010 (2QFY10) from $8.71 million in 2QFY09. Revenue for the quarter grew 24% to $182.8 million from $146.9 million.
For the half year (1HFY10), net profit grew to $166.1 million from $17.9 million.
For 1H, revenue grew 17% on the back of increased business volume and higher freight rates since the latter half of 2009, which was offset by a corresponding increase in freight costs. The record profit achieved in 1HFY10 was primarily due to the $147.6 million one-off gain from the sale and leaseback of CWT Commodity Hub and CWT Cold Hub on 12 April 2010. Excluding the gain, profit from operations increased slightly by 1.9% to $21.0 million, as compared to the previous corresponding period.
During the period, the group also commenced new operations to expand its commodity logistics network in Europe. Coupled with higher business development expenses to secure a new major customer account, the startup cost incurred led to an increase in administrative expenses from $25.7 million in 1HFY09 to $28.6 million in 1HFY10.
CWT says it continues to maintain a healthy balance sheet with a net asset value per ordinary share of 86.5 cents as at 30 June 2010. Following the repayment of loans amounting to $144 million during the period, the Group stood at net cash position of S$244.0 million as at end 1HFY10.
The directors have approved a special interim net cash dividend of $0.06 per ordinary share for the current financial year. The dividend is expected to be payable on 26 August 2010.
