Revenue for the second quarter nearly tripled to $260 million from $94.8 million in 2Q15, mainly lifted by the group&rsquo s TuasOne Waste-to-Energy (WTE) project and Qurayyat Independent Water Project (IWP) in the Sultanate of Oman.
Geographically, Singapore and Middle East continued to be the key markets, accounting for 63% and 29% of total revenue respectively.
Municipal projects remained the main contributor of the group&rsquo s revenue, accounting for approximately 93% of total revenue.
Despite stronger projected revenue and profit contributions from its engineering, procurement and construction (EPC) activities, Hyflux expects weak financial performance from its Tuaspring power plant in 2H16.
In a Wednesday filing, Hyflux says the power market in Singapore continues to face &ldquo strong headwinds with weak electricity prices&rdquo . Hyflux says this has an adverse impact on profitability as profits generated from the higher construction activities in 2016 to be partially offset by amortisation and financing costs of the Tuaspring power plant in the near-term.
&ldquo On the consumer front, we expect to commence production of ELO drinking water in Singapore from third quarter this year,&rdquo says Olivia Lum, group CEO of Hyflux. &ldquo We are optimistic about the potential of the ELO consumer business and the opportunity to reach out to a broader group of consumers.&rdquo
An interim dividend of 0.2 cent per share has been declared for the six months ended June.
Shares of Hyflux closed 0.89% lower at 56 cents.
