CWT’s 4Q core net profit of S$31.4m excluding one-time gains rose 64% QoQ and 43% YoY, because of strong contributions from naphtha which experiences seasonally stronger demand in winter. Overall revenue was up 65% QoQ and 101% YoY, driven by strong Commodity SCM revenue growth (+71% QoQ, +122% YoY). Core logistics revenue had a mixed showing (+12.4% QoQ, -12.8% YoY) as freight forwarding revenues fell, but contract logistics, commodity logistics and engineering services held up well.

CWT Limited (C14.SI)is one of the few growth stocks that I own. I bought the shares in 2012 because the company was attractively priced and I was impressed by the management’s ability to grow the company to its current scale. However, I was somewhat disappointed that the foray into the commodities market did not go as well as expected. The strong revenue growth did not translate into earnings (Read more...)