Hyflux reports more than S$1 billion loss for January-to-September period

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This article was originally published on Saturday, 30 March 2019 at 20:48 SGT; it has since been updated with further details.

Troubled water infrastructure company Hyflux reported on Friday a loss attributable to shareholders of S$1.12 billion for the January-to-September period.

That compared with a S$53.01 million loss in the year-earlier period, it said in a filing to SGX on Friday.

Excluding the troubled Tuaspring desalination plant, the nine-month loss was S$1.08 billion, it said.

The results included a S$916.46 million impairment loss due to an assessment of the carrying value of assets, mainly from Tuaspring, and from the impairment of receivables from previously completed projects, it said.

That was due to a lower valuation from the most recent market study, which took into account recent years’ losses in the electricity market and projected lower spark spreads for the remaining concession period, Hyflux said.

Because the current valuation is “significantly lower” than the valuation in 2016, the company plans to commission a further valuation from a different valuer to finalize 2018 financial results, Hyflux said.

Revenue for the nine months fell 75 percent on-year to S$67.86 million from S$271.30 million in the year-earlier period, Hyflux said.

In its outlook, Hyflux said it financial performance and position over the next 12 months would hinge on successfully completing its restructuring and a proposed agreement from SM Investments to invest S$530 million for a 60 percent stake in Hyflux, which had filed for court protection in May.

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