DEVELOPER Low Keng Huat has defied the gloom in corporate Singapore by reporting that third quarter net profits surged 245 per cent to $13 million.

Revenue for the three months to Oct 31 was $52.2 million, up from $26.4 million last year, it announced on Monday.

The nine-month numbers were equally as impressive with net profits up from $11.4 million last year to $23.4 million on the back of a 66 per cent jump in revenue to $148.1 million.

Its robust bottomline was due to higher development profit from associated companies, lower construction loss which were offset by lower profit from its hotel and investment segments, and a higher taxation charge.

The group's construction segment, however, was its key driver, with revenue for the nine months hitting $60.6 million.

Gross profit for the same period also rose by $9.1 million to $18.3 million, mainly due to ex-gratia payment from partners for the Domain 21 condominium development, cost recovery for concrete due to the Indonesian sand ban and the completion of construction projects like The Chuan, Novena Phase 3, Twin Regency and Domain 21 in 2007.

Two of its new projects - Meritus Mandarin Hotel and Hard Rock Hotel at Sentosa - have also started to contribute to the group's performance.

Earnings per share for the quarter rose from 0.51 cents to 1.75 cents while net asset value per share was 28 cents as at Oct 31, down from 54 cents at Jan 31.

No dividend has been declared or recommended for the nine months ended Oct 31.

Managing director Low Keng Boon hinted that harder times are ahead in the group's financial statement. He said: 'There is no certainty on how long the recession is going to last.'

But the firm secured a $295 million project in November to build a shopping mall with an integrated bus interchange at Serangoon Central. This took its total order book to about $900 million.

Mr Low was also quoted in the statment as saying that the group's remaining two hotels, in Perth and Ho Chi Minh City, are expected to continue to perform well despite the looming recession.

Low Keng Huat shares closed 1 cent, or 8 per cent up at 13.5 cents on Monday.