Industrial Asphalts signs MoU with Singapore firm to tap bitumen prospects in South Asia

Thursday, 14 October 2021 00:19 -     - {{hitsCtrl.values.hits}}

Industrial Asphalts (Ceylon) PLC has entered into a Memorandum of Understanding (MOU) with Hiin Holdings Ltd. of Singapore (Hiin) to explore opportunities in the bitumen space in the South Asian region.

Hiin is East Asia’s leading asphalt and fuel supplier and logistics provider. Its capabilities are enforced through a fully integrated supply chain that synergises strong business networks with a comprehensive suite of logistical capabilities that includes their fleet of asphalt and fuel tankers, in-land oil terminals, and other in-land distribution capabilities. 

This enables Hiin to support complex and large-scale shipments, especially those in the most remote locations.

Industrial Asphalts (Ceylon) PLC (IAC) said the MOU would bring IAC and HIIN under one umbrella to study and understand the current and future business opportunities in the bitumen space encompassing Sri Lanka and the South Asian region.

“This enables the creation of the required platform to explore the possibility of establishing a joint venture Company,” IAC added.

Established in 1970, Hiin is a four-time winner of the prestigious Enterprise 50 awards in Singapore.

It said the market would be duly informed in the event the joint venture agreement was being executed with HIIN. Share price of IAC gained by 25% or 10 cents to close at 50 cents with 6.67 million shares traded.

In the FY21 annual Report, IAC Executive Director G. Ramanan said: “The company will continue to explore opportunities to take strategic positions in ventures where the projected returns reflect the company’s aspirations.”

In FY21, IAC reported a revenue of Rs. 108 million down from Rs. 402 million whilst gross profit amounted to Rs. 49 million, marginally down from Rs. 52 million in FY20. Results from operating activities declined from Rs. 197 million to Rs. 126 million and pre-tax profit from Rs. 182 million to Rs. 117 million.

IAC had assets worth Rs. 1 billion as at 31 March 2021 whilst liabilities were only Rs. 37.6 million a sharp drop from Rs. 362 million in FY20. Retained earnings amounted to Rs. 770 million, up from Rs. 653.7 million in FY20.