Straits Trading : swings back to black in 3Q The Edge Markets (Online)

Published on The Edge Markets (http://www.theedgemarkets.com.sg)

Nov 11, 2016 | Written by Gwyneth Yeo | 0

SINGAPORE (Nov 11): Straits Trading Company posted earnings of $16.8 million in 3QFY16, compared with net losses of $7 million in 3QFY15.

For the quarter to Sept, revenue declined 18% to $113.4 million, as tin mining and smelting revenue fell 19.8% to $108.1 million on lower production of refined tin due to the lower receipt of feed materials, as well as translation effects from the depreciation of the ringgit against the Singapore dollar.

On the other hand, property revenue rose 58.2% to $5.2 million owing to higher rental income from its Australia and Japan properties.

Chew Gek Khim, Executive Chairman of Straits Trading, said the group's strategy of leveraging its real estate ecosystem and resources platform to create value is working and added that the group will continue to invest in its various real estate investments and resources platforms to create long- term value.

Furthermore, the group also announced on Nov 8 that it is part of a consortium - including JL Investment Group, Cheung Kong Property Holdings, Warburg Pincus, and AVIC Trust Co - which has proposed the privatisation and delisting of ARA Asset Management from the local bourse.

Upon the completion of the transaction, Straits Trading will receive cash of approximately $48.2 million and own a 20.95% stake in ARA.

Shares in Straits Trading closed 0.5 cents higher at $1.995 on Friday.

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