Hyflux posts record full-year profit of S$59m

I couldn't resist including Hyflux's results. Against a backdrop of negative news and profit decreases in the banking scene, Hyflux saw a yoy 79% incrase in net profit.

I am curious about the cash position and leverage level of this gem. Will investigate further when I have the time (bedtime soon lah).

=========================

19 Feb 08 (CNA)

Hyflux posts record full-year profit of S$59m

Water treatment firm Hyflux has reported record earnings for the financial year ending December 2008.

Profits jumped from S$32.9 million a year ago to S$59 million, despite the global economic slowdown. Its revenue more than doubled last year to hit S$544 million, and things do not seem to be slowing. In fact, some of Hyflux's projects are ahead of schedule and it has even had requests to further speed up development.

In the year ahead, the group believes its strong cash position means it can afford to be selective with projects. Hyflux group deputy chief executive officer, Sam Ong, said: "I think we have been selective - in this position of strength of income statement and balance sheet perspective - what we are investing in. "I think, moving forward, what we want to ensure is that the projects we are investing in will be cash neutral to cash positive from day one."

Hyflux has an order book worth S$1.15b for engineering, procurement and construction work. It also has a stable recurrent future earnings stream, with S$335 million worth of service-based concessions to be realised over the next 25 to 30 years in places like China and Algeria. Mr Ong said: "In Tlemcan Algeria, it is a plant that is twice the size of our Singapore desalination plant in Tuas. It is progressing ahead of schedule and on budget."

Hyflux is confident of growth especially from projects in China, the Middle East and North Africa (MENA). Hyflux currently has a strong pipeline of 44 plants covering wastewater treatment across China. In the MENA region, it is completing a plant in Tlemcen, Algeria, along with the world's largest reverse osmosis seawater desalination plant in Magtaa, Oran, Western Algeria. The project is to be completed in early 2011.

Some 94 per cent of Hyflux's total revenue came from China and the MENA region, and though Hyflux is anticipating some slowdown from parts of business in China, it said this will have no major impact on performance in the year to come. To keep up with its growing business, Hyflux will be recruiting up to 300 more staff worldwide this year. The company has also reported record dividends of 3.43 cents per share.