SembCorp Logistics Ltd., Southeast Asia's biggest logistics firm, Tuesday reported a 15 percent on-year rise in third-quarter net profit, boosted by robust supply chain management business in North Asia.
Net profit in the July-September period totaled US$27.1 million, up from $23.6 million a year earlier, as revenue rose 55 percent on year to $193.6 million from $124.6 million.
The performance was an improvement from the 3 percent net profit decline in the second quarter to $25.3 million from $26 million a year earlier.
The unit is 62 percent-owned by Singapore marine and utilities conglomerate SembCorp Industries Ltd.
For the nine months to September, SembLog posted a 16 percent on-year rise in net profit to $78.9 million from $67.8 million, and a 53 percent revenue increase to $539.9 million from $353.2 million.
Looking ahead, SembLog said it expects to perform well for the full year. The group reported a net profit of $90.6 million for full-year 2003.
SembLog said it will book a net gain of S$1.04 billion from the sale of its 20 percent stake in Swiss forwarder Kuehne & Nagel in the fourth quarter.
While the sale will boost SembLog's fourth-quarter earnings, the company will have to plug a big hole in the succeeding quarters as KNI had accounted for up to half of group earnings.
Without KNI's contribution, SembLog's net profit for the nine months to September would have been sliced to $38.3 million from $78.9 million.
SembLog said it remains well-positioned to accelerate growth and expand its scope of activities to include freight management.
In the third quarter, the group's revenue from supply chain management grew 63 percent to $182 million from $111.4 million a year earlier, with revenue from China and Japan rising to $94 million from $20.1 million.
Contribution from its oil and gas logistics services was flat at $10.3 million.