AsiaPhos 5WV has reported earnings of $1.9 million for the FY2023 ended Dec 31, 2023, reversing its loss of $2.5 million in FY2022.
Revenue for the full-year was 30% lower y-o-y at $1.7 million while cost of sales also decreased 28% y-o-y to $1.4 million.
The reversal is mainly attributed to a net profit of $6.1 million from discontinued operations. This was supported by rental income on the lease of its P4 plant, recognition of the deferred income relating to a government grant received in the past for the construction of the P4 plant, and a write-back of the provision for impairment of the P4 plant.
This was partially offset by a higher loss after tax from continuing operations of $4.0 million in FY2023, attributed to lower trading revenue and higher administrative expenses in connection with the unsuccessful appeal to set aside the International Arbitration Tribunal’s jurisdiction and the legal costs awarded to China.
Earnings per share for FY2023 came to 0.22 cents compared to a 0.15 cent loss per share in FY2022.
Cash and cash equivalents stood at $443,000 as at Dec 31, 2023.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
No dividend has been declared for FY2023.
The group has received RMB20 million ($3.72 million) and RMB39.39 million for the disposal of its P4 plant, with the latter figure under escrow. When completed, AsiaPhos says the disposal of the P4 plant will enhance shareholder value with the proceeds used to fund future investments.
The potential acquisition of a renewable energy business, subject to the execution of a definitive agreement, will also allow the group to diversify into new businesses or growth areas and supplement its existing businesses.
Shares in AsiaPhos closed unchanged at 0.8 cents on Feb 29.
