Citic Envirotech reported Monday its first quarter net profit dropped 89.5 percent on-year to S$4.39 million as engineering and membrane system sales revenue dropped on delays in two projects due to “adverse wintry condition.”
Revenue for the quarter ended 31 March fell 72.2 percent on-year to S$72.13 million, the company said in a filing to SGX after the market close.
Engineering revenue fell 94.3 percent on-year in the quarter to S$6.9 million, while membrane system sales dropped 84.9 percent on-year to S$13.7 million, the filing said.
Finance costs jumped 82.3 percent on-year in the quarter to S$16.90 million on the addition of bank loans to refinance perpetual capital securities in November, the filing said.
Citic Envirotech issued a positive outlook.
“China has reiterated its commitment to combat environmental pollution and develop its strengths in waste treatment,” the company said.
“This bodes well for the long-term growth prospects of China’s environmental protection industry, and translates to greater opportunities for CEL to pursue and secure more projects across a wide range of environmental services such as its core wastewater treatment solutions as well as its hazardous waste treatment solutions,” it added.