SINGAPORE - Lower finance expenses enabled property developer OUE to shrug off decreased revenue and report higher earnings for its third quarter.
Net profit rose 23.1 per cent to $16.5 million even though revenue fell by 10.8 per cent to $106.3 million.
OUE said on Tuesday that the drop in revenue was the result of lower residential sales and the absence of contribution from the China hotels which were disposed in the third quarter last year.
The firm, which has businesses in the hospitality, commercial and residential segments, saw a drop in turnover for all three.
The hospitality business saw revenue fall to $53.2 million from $59.1 million last year while the property investment division decreased to $38 million from $39.6 million last year.
Lower sales from its only development project, Twin Peaks, at Leonie Hill also meant revenue fell to $11.8 million from $19.2 million, a 38.4 per cent drop.
OUE expects tougher times in the property development market ahead.
"The market environment for high-end residential property remains challenging," it said.
"The group will continue to drive the sale of its only development project at Leonie Hill, Twin Peaks, which is scheduled to complete in 2015."
Shares of OUE closed unchanged at $2.12 on Tuesday.