Singapore, desalination group, Hyflux, generated more than 90% of its revenue for the six months to 30 June 2015 in municipal markets with almost a half of its sales in its home market and more than a third in China according to its first half 2015 report. Group profit after tax and minority interests was S$31.6 million (US$ 22.6 million) for the period.
First half group revenue was S$155.2 million (US$ 111 million) for the first half with municipal projects representing 91% or S$141.9 million US$ 100 million).
Asia remained the group’s main market with Singapore making up 47% – a small decline – and China accounting for 37%.
Revenue contributions from China and the Middle East and North Africa (MENA) region rose as a result of the divestment of five Chinese assets and the start of construction of the Qurayyat Independent Water Project in the Oman. MENA revenue was forecast to increase as Hyflux works on Qurayyat IWP in Oman and a containerised desalination project that was awarded in June 2015 to upgrade Saudi Arabia’s Yanbu desalination plant.
“With the recent new project wins in Oman and Saudi Arabia, we have gained positive momentum. We will also continue to explore potential divestment opportunities,” said Hyflux executive chair and chief executive officer, Olivia Lum.
Hyflux’s total order book stood at $S 2.9 billion, (US$ 2.1 billion) with S$ 1.9 billion (US$ 1.4 billion) from operations and maintenance and S$ 1.0 billion (US$ 0.7 billion) from engineering, procurement and construction contracts.
Hyflux’s 411 MW combined cycle gas turbine power plant co-located with a desalination plant at Tuaspring, Singapore has been connected to the national power grid. The plant is expected to be in full operation in early 2016. “Expanding into the energy business with our first integrated water and power project positions us strategically for the future,” said Lum.