Uni-Asia swings to 4Q18 net loss amid valuation loss for containerships

Singapore port and Sentosa islandSingapore port and Sentosa island

Uni-Asia Group reported on Friday it swung to a fourth quarter net loss of US$2.28 million from a year-earlier net profit of US$3.18 million amid valuation loss and impairment of containerships.

Total income for the quarter ended 31 December rose 23 percent on-year to US$37.24 million, it said in a filing to SGX on Friday.

For the full year, Uni-Asia reported a net profit of US$3.92 million, down 56 percent on-year, on total income of US$123.28 million, up 19 percent on-year on increased income from charters and hotels.

In 2018, Uni-Asia reported a US$9.2 million valuation loss, mainly for containerships and a disposed product tanker investment, and an impairment of US$3.0 million for a wholly owned containership investment.

“As the market condition didn’t favor slightly older vessels, the group has recognized impairment loss for the wholly-owned containership and fair valuation losses for the three joint-investment containerships,” it said. It added that the containership investments faced weaker container trade demand due to the ongoing trade war and geopolitical evens and tonnage oversupply.

“Following these losses, the current valuation of the group’s shipping portfolio is fairly low, and any further downward valuation loss would be limited,” Uni-Asia added.

For the investment segment, revenue for the full year dropped 32 percent on-year to US$5.76 million, with a net realized gain from investment properties of US$2.4 million, net recovery of US$1.2 million from distressed asset investment and a net fair value gain of US$9.3 million on a Hong Kong commercial office building offset by the containership valuation loss.

Hotel income for the full year rose 43 percent to US$68.59 million as five new hotels were added to the group’s portfolio, raising the number of rooms under operation by 44 percent to 2,667 at end-December from 1,851 at end-2017, it said.

The company proposed a final divided of 6.25 Singapore cents a share and a special dividend of 0.75 Singapore cent a share on a gain from a Hong Kong property project.

Uni-Asia is an alternative investment company, acting as an asset owner and manager, operator, co-investor, ship-finance arranger, broker and fund manager. Its investments focus on cargo vessels and properties in Hong Kong and Japan.

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