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ABALONE producer Oceanus Group yesterday reported a net profit of 79.5 million yuan (S$16.8 million) for its second quarter ended June 30 - a turnaround from the year-ago period when goodwill write-off gave it a net loss of 36.7 million yuan.
Earnings per share came to 4.5 fen, against a net loss of 2.27 fen a year ago.
Oceanus's net profit for the comparative Q2 2008 would have been 115.6 million yuan if the goodwill write-off of 149.98 million and 2.32 million yuan loss from discontinued operations were excluded.
Revenue for the three months ended June 30 fell 44 per cent to 73.5 million yuan from 130.8 million yuan a year back.
Oceanus's net asset value per share was 60.30 fen at end-June, up from end-December 2008's 49.82 fen.
The company said that the revenue plunge was due to lower prices for abalones amid the global financial crisis. Also, the quarter's results were compared with last year's unusually high base - a supply shortage in the market after sea farms in Fujian and Shandong were hit by red tide and algae bloom led to a spike in Oceanus's sales then.
Q2 2009's sales were also lower as canned abalones were recorded as inventory and not sales, as they would have been if sold live, Oceanus said.
Cash and bank balances fell 2 per cent to 39.7 million yuan as at June 30, from 40.7 million yuan as at Dec 31, 2008 as cash was used for working capital purposes.
Total liabilities rose due to bridging loans granted by shareholders, an increase in deferred tax liabilities and a two-year term loan from a Singapore bank.
The group recently raised $73.5 million, which will be used to expand its three main business activities - production, processing and retail.
Oceanus shares gained half a cent to close at 36 cents each yesterday.
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