OUE suffers fall in profit despite higher sales; declares special dividend of 20 cents a share

HOTEL group Overseas Union Enterprise (OUE) has suffered a 36.1 per cent drop in second quarter net profit to $14.6 million.

This was despite revenue for the three months to June 30 rising 15.8 per cent to $112 million.

The stronger showing in revenue was mainly attributed to higher revenue recognised by the property development division from the sale of residential units at its luxury property, Twin Peaks.

However, as a result of lower contribution from 6 Shenton Way and an increase in administrative expenses due to higher legal and professional fees and headcount cost, net profit was lower.

Earnings per share eased to 1.6 cents from 2.5 cents previously while net asset value per share fell to $3.44 compared to $3.49 as at Dec 31.

An interim dividend of one cent a share plus a special dividend of 20 cents were declared. The special dividend will come out of proceeds from the disposal of Mandarin Orchard Singapore and Mandarin Gallery to OUE Hospitality Trust, which was approved by OUE shareholders in June.