Straits Trading reports H1 loss of S$40.8 million

[SINGAPORE] The Straits Trading Company recorded a net loss of S$40.8 million for the first half of 2025, reversing from a net profit of S$5.2 million in the year-ago period.

It attributed the loss to two main factors – an associate company’s fair value losses and the remeasurement of exchangeable bonds that it had issued, which gave bondholders the option to convert their bonds into shares of ESR, if that company’s stock price rose. 

The Straits Trading Company is a conglomerate-investment company with stakes in ESR Group, Far East Hospitality and other entities. 

As ESR delisted from the Stock Exchange of Hong Kong on Jul 3, the bonds’ maturity date was brought forward, with S$284 million redeemed on Aug 8. 

“(These) fair value losses are non-cash in nature and do not impact on the group’s operating cash flow. The group’s underlying assets and financial position remain healthy with sufficient liquidity to meet its operational and financial commitments,” Straits Trading said on Thursday (Aug 14) as it reported its H1 2025 earnings. 

Its revenue for the period rose 5.9 per cent to S$267.5 million, from S$252.5 million previously.

The group’s property segment reported a net loss of S$13.2 million in H1, narrowing from the S$18.1 million net loss recorded in the year-ago period.

In the near term, it expects its property assets to face strong headwinds from a confluence of external factors, including the strength of the Singapore dollar, an uncertain interest-rate trajectory and ongoing geopolitical turmoil, the group said. 

It added: “As Straits Trading navigates this challenging landscape, it will streamline its portfolio and recycle capital in a systematic and prudent approach to pursue new investment opportunities. Backed by resilient capital and a long-term perspective, the group is actively exploring strategic opportunities in the senior living sector.”

The resources segment posted a net profit of S$8.4 million in H1 2025, down from S$11.3 million in H1 2024. 

While Malaysia Smelting Corporation, in which Straits Trading holds a majority stake, benefited from higher average tin prices per tonne in H1 this year, its performance was impacted by a one-off additional tax recognition and lower tin sales quantity, the group said.

It also owns 30 per cent of Far East Hospitality. Straits Trading’s hospitality segment had a net loss of S$1.7 million in H1, compared with a net profit of S$1.8 million in the year-ago period, due to impacts from ongoing refurbishment works at a hotel in Australia.

For H1 2025, it reported a loss per share of S$0.09, as opposed to earnings per share of S$0.012 in H1 2024. 

The group noted that global growth is expected to moderate amid rising trade tensions and persistent policy uncertainties, with inflation remaining elevated in several economies. 

Currency markets have shifted as countries diversify away from US assets, contributing to a gradual decline in the US dollar’s dominance, it added.

Shares of Straits Trading closed 1.9 per cent or S$0.03 down at S$1.56 on Thursday, before the results were released.