Developer GuocoLand has posted a 46 per cent rise in second-quarter earnings despite lower revenue.
Net profit for the three months to Dec 31 came in at $57.1 million - well up on the $39 million recorded in the same period a year earlier.
Revenue slipped 3 per cent to $232 million, while gross profit shrank 22 per cent to $47.4 million. This was due to "the different sales mix in the two periods of review", mainboard-listed GuocoLand said in a statement yesterday.
Net profit for the half year, however, slumped 85 per cent to $82.8 million, while revenue slid 36 per cent to $434.7 million. The weak performance for the period was due partly to a 94 per cent drop in other income to $37.2 million, as a result of a one-time gain from the disposal of subsidiaries relating to the Dongzhimen project last year.
Finance costs rose 10 per cent during the quarter to $18.9 million. Profit share from associates and joint ventures increased by $44.1 million to $44.8 million, thanks to higher contributions from an associate in Malaysia. This arose from the completion of its disposal of a site in Mukim and District of Sepang, Selangor.
Earnings per share for the quarter was 5.15 cents, well up on the 3.29 cents previously. Net asset value per share stood at $2.96 as at Dec 31, little changed from the $2.95 as at June 30 last year.
GuocoLand said it has partially financed its new land acquisitions by loans and borrowings during the six-month period.
The acquisitions include a $595.1 million residential site in Martin Place in Singapore, while in November, the group won the construction rights for parcels for mixed development use totalling 48,961 sq m in Chongqing, China, for 3.64 billion yuan (S$755 million). This is a joint venture with Hong Leong Holdings (China), which holds a 25 per cent equity interest in the project.
GuocoLand's total loans and borrowings increased by 17 per cent compared to the level on June 30 last year, mainly due to the financing of the new sites.
The firm said that despite the challenges in Singapore's property market, the office and retail components of its Tanjong Pagar Centre, which obtained its temporary occupation permit in October, have achieved commitment levels of more than 80 per cent. GuocoLand shares closed up 3.5 cents or 1.9 per cent to $1.855 yesterday, before the results were released.