Oxley reports 11% drop in Q2 earnings

SINGAPORE - Niche developer Oxley Holdings reported a 11 per cent drop in second quarter net profit to $22.2 million, due to a foreign exchange adjustment loss of $4.4 million in the quarter.

Revenue for the three months to Dec 31 rose by 16 per cent to $235.5 million, it said on Thursday.

The rise was mainly due to revenue recognition, based on the completion-of-construction method, from the group's 38-unit commercial and office development, Robinson Square.

Revenue was also recognised from the construction of 11 mixed-residential projects like Devonshire Residences and Oxley Edge.

Other income fell by $220,000, mainly thanks to the decrease in rental income of $0.93 million.

Earnings per share fell to 0.75 cent from 0.85 cent previously, while net asset value per share rose to 14.85 cents as at Dec 31, compared with 13.92 cents as at June 30.

For the half-year, net profit fell 88 per cent to $32.4 million, on the back of a 60 per cent fall in revenue to $355.8 million.

The company has various overseas projects in progress.

In Cambodia, it has started building The Bridge, a mixed residential and commercial development located in the heart of Phnom Penh.

Nearly all the residential units have been sold.

The company added: "As property cooling measures in Singapore continue to take effect, market sentiment for the residential property sector is likely to remain muted in the year ahead."

Oxley shares fell half a cent to 51 cents on Thursday.

Correction: This article was corrected on Feb 24, 2015. An earlier version of the story said Oxley Holdings reported a 11 per cent rise in second quarter net profit. It should be an 11 per cent drop.