Hyflux 9M15 Net Profits Slumps Amidst Europe Investment

Hyflux reported a 65.6 percent slump in 9M15 net profits to $38 million together with an announcement of an investment into a European consumer water technology firm.

Despite recording a 7 percent increase in revenue to $288.8 million contributed by the Qurayyat Independent Water Project in the Sultanate of Oman, the reduction in profitability was mainly caused by a lower level of divestment activities in 9M15 as compared to 9M14.

Divestment in 9M14 contributed significantly to Other Income (9M14: $144.9 million), comprising a $83.5 million gain from sale and leaseback of Hyflux Innovation Centre and $54.1 million gain from disposal of Marmon entities. Whereas in 9M15, other income of $60.9 million was contributed mainly by a $15.8 million gain on disposal on just one of the group’s buildings and a provisional fair value remeasurement gain of $12.3 million from acquiring its remaining 50% equity stake in H.J. NewSpring Limited.

Concurrent to the release of 9M15 results, Hyflux has also announced the signing of an agreement to eventually acquire a 30 percent stake in consumer water technology company, Kaqun Europe Zrt (Kaqun Europe), for US$8 million.

Kaqun Europe was launched in 2002 and pioneered a water with beneficial properties that promote overall wellbeing. The group will integrate its proprietary technology together with Kaqun Europe for a product line that it has exclusive rights to manufacture, sell, market and distribute under the brand name ELO in the Asia Pacific, the Middle East and Africa, through a newly established entity called Elo Water, with the group owning a 70 percent stake and the remaining 30 percent by Kaqun Europe.

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