15.11.2007

Crane rental doubles at Tat Hong

Tat Hong, the Singapore based crane rental and sales company has reported half year results to the end of September, with crane rental revenues up by 101 percent to s$80.9 million ($56/£27 million).

Revenues at the groups equipment sales and distribution operation, were up by 24 percent to s$141 million ($97.5/£47.3 million) largely driven by higher crane sales.

Factors contributing to the substantial improvement include:

- Increased rental fleet size driven by strong demand in Australia from the oil & gas sectors.

- The contribution from Muswellbrook Cranes Services, acquired at the end of last year by Tutt Bryant, its Australian business.

- Higher utilisation rates due to a number of major projects, including: Integrated Resort, a major oil and gas project at Pulau Bukom, Jurong Island in Singapore , and Palm Jumeirah in Dubai.

- A contribution from the group’s new subsidiaries in China.

Overall group revenues, which include its parts and service activity and its general rental business, rose by 40 percent to s$298 million ($206/£100 million) with pre tax profits jumping 126 percent to s $61.4 million($42.4/£20.6 million).

Roland Ng chief executive said: “We are delighted to report yet another set of sterling results for our interim performance. Our ability to deliver record results every quarter since 2002 speaks volumes of the strong fundamentals of the Group.”

“As a leading global player, specialising in larger cranes, we are well-positioned
to ride on the booming infrastructure and Oil & Gas sectoral growth, enjoying higher utilisation rate, higher selling prices and rental rates as a result of the demand-supply imbalance."

“The outstanding results for bear testimony to our extremely strong
position in the industry. At this rate of growth, we are optimistic of surpassing our growth target of 30 percent annual net profit growth for the next three years,”he added.

Tat Hong operates throughout Asia and Australia with one of the largest crane hire fleets in the region. In Australia it owns Tutt-Bryant which distributes a wide range of cranes and construction equipment as well as being one of Australia’s largest crane rental company’s.