Gallant Venture Ltd reported a net loss of S$26.4 million for the six months ended Jun 30, reversing from a profit of S$20.5 million a year earlier, as foreign-exchange losses and costlier utilities eroded margins despite stronger top-line growth.

Revenue expanded 18 per cent year-on-year (YoY) to S$118.5 million, lifted by larger leased industrial space, higher utilities billings and a maiden S$6.5 million contribution from the coconut-products unit acquired in July 2025.

Basic loss per share came in at 0.451 Singapore cents, compared with earnings of 0.373 cents a year ago. The board did not declare any interim dividend, citing the need to preserve cash for ongoing industrial-park and utilities expansion.

Segment performance showed mixed results. Pre-tax operating profit from industrial parks climbed 29 per cent YoY to S$13.1 million, while utilities contributed S$6.4 million, down sharply from S$32.0 million previously as natural-gas tariffs surged. Resort operations swung to a S$1.8 million profit from a S$0.3 million loss, supported by a 10.4 per cent rise in tourist arrivals and firmer ferry revenues. Property development posted a S$11.3 million loss, and the coconut products unit recorded a S$4.2 million operating deficit in its first full half-year under the Group. Corporate costs totalled S$8.8 million.

Group cost of sales jumped 42 per cent to S$84.2 million as the utilities business absorbed part of the spike in gas prices, widening the cost-to-revenue ratio to 0.71 from 0.59. Other expenses swung to S$7.5 million from an income of S$38.5 million, largely because a S$34.2 million foreign-exchange gain in 1H2025 turned into a S$9.0 million loss amid a stronger US dollar. Finance costs eased 18 per cent to S$17.5 million after loan repayments, but this was insufficient to offset the higher operating outlays.

Gallant Venture’s total assets rose 9 per cent to S$2.22 billion, driven by S$294.6 million in capital spending on new factory blocks, ferries and the 3 × 350 MW coal-fired power plant under construction on Pulau Setokok. Net gearing increased to 1.4 times from 0.9 times as borrowings climbed to S$819.6 million following drawdowns of project and working-capital facilities.

Looking ahead, the company expects industrial-park income to stabilise as recent factory completions reach higher occupancy, while utilities earnings will hinge on its ability to manage elevated energy costs through tariff adjustments and the commissioning of the new power plant. In tourism, management is targeting more than one million visitor arrivals to Bintan Resorts in 2026, supported by additional ferry capacity and new attractions.