HYFLUX REPORTS S$21.9 MILLION NET PROFIT FOR FIRST HALF

- Record order book of S$2.1 billion


- Maintains interim dividend of 0.67 Singapore cents per ordinary share

- Strong balance sheet after successful issue of S$400 million perpetual preference

By ANGELA TAN


Water solutions company, Hyflux Ltd reported on Thursday that its net profit for the second quarter ended June 30, 2011 fell 47 per cent from a year ago to S$14.53 million.

Revenue fell 21 per cent to S$111.08 million.

For the half year period, net profit fell 35 per cent to S$21.93 million due mainly to higher finance costs, higher tax rates and higherdepreciation and amortisation.

The higher finance costs were the result of increased borrowings to gear up for the development of Singapore's second desalination plant, while a more aggressive amortisation policy accounted for the increased amortisation expenses from S$6.8 million in the first half of FY2010 to S$9.9 million in the first half of FY2011.

Revenue was down 18 per cent at S$197.90 million. This was mainly attributable to the timing difference between the decrease in contributions from the Middle East and North Africa (MENA) projects which are nearing completion and the start of construction works for the Tuaspring Desalination Plant in Singapore from the third quarter of 2011.

The group closed the quarter with a record order book of S$2.1 billion.

The board of directors has recommended an interim dividend of 0.67 Singapore cents per share. This is equivalent to the interim dividend for the same period last year of 1 Singapore cent per share, adjusted for the bonus shares issue in December 2010.