First-quarter earnings at property developer Oxley Holdings nosedived 80 per cent on the back of a sharp drop in revenue.
Net profit for the three months to Sept 30 came in at $7.1 million - a far cry from the $36.1 million in the same period a year ago.
Revenue slumped 71 per cent to $126.5 million.
Oxley said late last Friday that the lower net profit and revenue, compared with the same quarter the year before, was due to the "timing and different levels of progress in project construction and completion".
Turnover for the quarter came primarily from revenue recognition on five of the group's residential and mixed-use projects in line with the construction progress, based on the percentage of completion method.
It was also supported by revenue recognition on the handover of some units in The Royal Wharf Phase 1 and rental income generated by investment properties.
AT A GLANCE
NET PROFIT: $7.1 million (-80%)
REVENUE: $126.5 million (-71%)
The higher revenue of $435.9 million previously had been mainly due to the recognition of revenue on the completion of Ecotech@Sunview.
The lower revenue dragged down gross profit by 54 per cent to $19.7 million, which was also weighed down by the lower share of profit from equity-accounted joint ventures and associates.
Gross profit margin, however, improved significantly from 23.9 per cent to 37.6 per cent.
Earnings per share fell to 0.24 cent from 1.22 cents previously. Net asset value per share stood at 26.95 cents as at Sept 30, up slightly on the 26.79 cents as at June 30.
Oxley has launched 32 projects and completed 23 projects to date. Its total unbilled contract value amounted to $2.66 billion as at Sept 30, of which about $900 million is attributable to Singapore projects, and about $1.76 billion is attributable to overseas projects.
Oxley said it expects to receive $1.37 billion in the next 12 months when a number of its projects complete or obtain temporary occupation permit, including KAP & KAP Residences in Singapore and phase one of the Royal Wharf project in London.
The group added that construction and sales are progressing well for The Peak and The Bridge developments in Cambodia, while in Malaysia, Oxley Towers Kuala Lumpur City Centre has commenced construction and will be launched at an appropriate time, depending on market conditions.
It also plans to launch Min Residences in Yangon, Myanmar and the Oxley Convention City in Batam, Indonesia in the fourth quarter.
Oxley executive chairman and chief executive Ching Chiat Kwong noted that the launch of its Dublin Landings project in Ireland had been the highlight for the quarter. "It marked another major step in our overseas expansion, after the Royal Wharf project, as we continue to build our revenue pipeline for sustainable growth," he said.
Mr Ching added: "The unbilled contract value of $2.7 billion will allow us to meet our operational and construction needs and pay down our debts to further reduce gearing. Complemented by recurring income from investment properties, Oxley will gain a stronger financial foothold to fund existing and future projects, and create value for our shareholders and investors."
Oxley shares finished flat at 47 cents last Friday, before the results were announced.