AP Oil International (5AU) H1 2024 earnings summary

Executive summary

• H1 revenue rose 33% YoY to S$27.556m; profit before tax was S$977k vs S$110k, and profit after tax was S$832k vs S$107k.

• Basic and diluted EPS increased to 0.506 Singapore cents from 0.065 cents.

Financial highlights

• Gross profit increased 48% YoY to S$4.849m; gross margin rose to 17.6% from 15.8%.

• Distribution costs rose 36% YoY, mainly from higher employee, freight and travel costs; administrative expenses increased 11%, mainly from employee and travel costs.

• Interest income rose S$0.1m YoY on higher fixed-deposit rates and cash balances; JV profit contribution fell 64% due to lower earnings from AP Saigon Petro Joint Stock Company.

• Other gains included S$50k from settlement of a 2019 agreement; a further US$91,591 is due and will be recognised as a gain when collected.

Outlook and guidance

• No significant variance from the previously disclosed prospects; management is monitoring opportunities and may explore their viability, supported by a healthy balance sheet.

• No interim dividend was recommended pending full-year results to determine the net change in cash equivalents.