One-off gains distort Hyflux's ailing core profit

Low construction work remains an issue.

Revenues may have increased by 18% for Hyflux, but they can't celebrate just yet. A bulk of the global environmental solutions company's earnings came from one-off gains from $42.5m and $83.5m divestment gains from China water assets and the sale of Hyflux Innovation Centre respectively.

Analysts from Maybank Kim Eng say without these gains, Hyflux's core revenue would be reduced by 35% YoY and would translate to a loss of $16.5m. They attribute the lackluster performance to lower construction work after the Tuaspring plant was completed.

"Tuaspring power plant (411 MW capacity) has been connected to the power grid and testing and commissioning is in progress. It is expected to be operational in early 2016," a report from Maybank Kim Eng said.

Meanwhile, Hyflux sees better days on the horizon in the second half as new projects from Oman and Saudi Arabia kick in.