AsiaPhos suffers $3.7m net loss despite revenue tripling in 4Q2013

Hurt by higher listing expenses.

Singapore-headquartered mineral resources company AsiaPhos Limited (AsiaPhos) announced a 73% rise in its revenue to $8.5 million for the financial year ended 31 December 2013 (FY2013), lifted by its 4Q2013 revenue which surged 185% to $2.7 million.

The company said the improved topline in FY2013 was boosted by both upstream and downstream segments, which saw revenue grew 77% and 61% respectively. However, as the Group continued to ramp up its operation for future expansion, related operational costs also increased.

In addition, there were non-recurring listing expenses and costs incurred as part of the Group’s contribution to improve the environment in Mianzhu City, which resulted in total costs rising by 59% to $6.6 million. There was also a charge of deferred tax of $1.4 million. These impacted the Group’s profitability, leading to a net loss of $3.7 million for FY2013.

Commenting on the results, Dr Ong Hian Eng, Chief Executive Officer of AsiaPhos Limited said, “As we are in this initial stage of rebuilding the business, the topline growth is a strong indication of the success of our rebuilding efforts and the potential of the business. As economies of scale sets in with business expansion, we expect the Group to perform better.

“We made significant progress in 4Q2013 as mining output increased which led to the increase in quantity of phosphate rocks sold. We also made progress in developing our downstream segment. Going forward, in line with our strategy to grow in a sustainable and responsible manner, we have invested capital to increase the number of producing wells, acquire equipment to increase our mining output and improve safety measures. These measures were instrumental in laying the foundations for our vertically-integrated operations and enhancing the Group’s future value, and we expect benefits to gradually kick in after FY2013."