Archipelago condo project helps lift UIC's Q3 earnings

HIGHER contributions from the Archipelago condominium project and reduced costs helped propel earnings higher at United Industrial Corp (UIC) in the third quarter.

Net profit rose 8 per cent to $43.4 million for the three months to Sept 30, the property group announced on Friday.

By contrast revenue was down 16 per cent to $152.38 million due to lower sales of trading properties.

This refers to reduced recognition of condo sales at The Trizon and The Excellency, which is in Chengdu, China.

That dip was partly offset by a lift from the hotel operations thanks to the Pan Pacific Singapore re-opening after renovations from April to August last year.

The closure hit hotel revenue in the period a year ago so this year's numbers are comparatively higher.

The company also benefitted from a decrease in selling and distribution costs. These had mounted in the same quarter a year ago when the firm marketed the V on Shenton project.

Earnings per share for the quarter were 3.1 cents, up from 2.9 cents a year ago, while net asset value per share was $3.54 at Sept 30, from $3.40 at Dec 31 last year.

Net profits for the nine months to Sept 30 grew 31 per cent to $218.56 million despite turnover falling 18 per cent to $454.36 million.

UIC's separately-listed unit, Singapore Land, said on Friday that third quarter net profit fell 13 per cent to $49.4 million.

Revenue declined 28 per cent to $110.1 million, with the company citing the same factors as UIC - sales of trading property were lower but partially offset by higher revenue from the Pan Pacific Singapore hotel.

Earnings per share for the three months were 12 cents, down from 13.8 cents a year ago. Net asset value per share was $12.84 at Sept 30, from $12.42 at Dec 31 last year.