Straits Trading Company Limited swung back to the black at the pre-tax level for the six months ended Jun 30, 2026, as its resources arm rode on buoyant tin prices. The group’s loss attributable to shareholders narrowed sharply to S$11.1 million from S$40.8 million a year earlier, while revenue surged 49.5 per cent year-on-year to S$400.0 million.
Group earnings per share improved to a negative 2.4 Singapore cents from a negative 9.0 cents a year ago. No dividend was declared for the interim period.
The Resources segment, represented by 52.07-per-cent owned Malaysia Smelting Corporation (MSC), generated S$351.2 million in revenue, up 54.4 per cent YoY, and lifted profit after tax to S$29.6 million. Real Estate turnover grew 21.8 per cent to S$48.8 million, supported by higher contributions from South Korean and Australian logistics assets and the Crowne Plaza Penang Straits City, although the division posted a wider after-tax loss of S$15.5 million following currency translation and hedging charges. The Hospitality joint venture Far East Hospitality Holdings cut its after-tax loss to S$0.1 million, aided by firmer hotel operations and currency gains.
Group earnings before interest, tax, depreciation and amortisation eased 2.7 per cent to S$53.8 million as real-estate and hospitality softness offset the resources uplift. Net gearing improved to 57.5 per cent from 61.8 per cent at end-December 2025 after loan repayments reduced cash and bank balances to S$280.4 million from S$488.4 million.
During the half, MSC began building a 10-tonne-per-day rotary furnace at its Rahman Hydraulic Tin mine to back up the Pulau Indah smelter ahead of scheduled maintenance, while the Butterworth plant’s closure completed the shift to a single, more efficient production site. In real estate, Straits Trading exited the Arenas Yeongjong logistics development in South Korea, crystallising a project-level internal rate of return above 20 per cent and an equity multiple exceeding 3.0 times. The group is also preparing to launch “The Silver Movement”, an integrated independent-living platform for seniors.
Executive chairman Chew Gek Khim said the half-year performance underscored the benefits of the group’s diversified portfolio. She noted that elevated tin prices and improved operating efficiency underpinned the resources division, while real estate continued to face valuation pressure and currency headwinds. Chew added that the company has prioritised debt reduction and disciplined capital deployment to bolster resilience amid volatile markets.
Management cautioned that 2026 is likely to remain challenging given persistent geopolitical tensions, high interest rates and currency volatility. Even so, the group intends to maintain a conservative balance-sheet stance, pursue selective divestments and investments, and expand its presence in sectors—such as resources, logistics real estate and senior-living solutions—that it believes can deliver sustainable long-term value.