Oxley Holdings Q2 net profit soars 163% to $123.7 million on higher revenue

Revenue soared by 241 per cent to $605.7 million, mainly due to recognition of revenue from its Oxley Tower commercial project and handover of certain plots in The Royal Wharf (above) Phase 1A.
Revenue soared by 241 per cent to $605.7 million, mainly due to recognition of revenue from its Oxley Tower commercial project and handover of certain plots in The Royal Wharf (above) Phase 1A. PHOTO: OXLEY HOLDINGS

SINGAPORE - Niche developer Oxley Holdings had a blow-out quarter, with earnings for the three months to Dec 31 rising 163 per cent to $123.7 million.

Revenue soared by 241 per cent to $605.7 million, mainly due to recognition of revenue from its Oxley Tower commercial project and handover of certain plots in The Royal Wharf Phase 1A.

Revenue was also recognised using the percentage of completion method on sold units in three mixed-residential projects in Singapore namely: Floraville/Floraview/Floravista, KAP and KAP Residences and The Rise@Oxley-Residences due to progress made in the construction of these developments.

The revenue also included rental income from investment properties.

The Group had cash and cash equivalents of $462.4 million as at Dec 31.

Total borrowings decreased further from $2.63 billion as at June 30 to $2.38 billion. Meanwhile, net gearing decreased to 1.8 times, compared to 2.2 times as at June 30, 2016 and 3.04 times as at June 30, 2015.

Oxley secured $455 million of new sales during the quarter, mainly from overseas projects, including Royal Wharf.

The amount of billings rendered to buyers amounted to $502 million.

The group also had total unbilled contract value of $2.6 billion, of which some $490 million was attributable to projects in Singapore and about $2.11 billion was attributable to projects overseas.

Revenue to be recognised by the group amounted to about $3 billion.

Earnings per share firmed to 4.23 cents from 1.59 cents previously while net asset value per share rose to 31.05 cents compared to 26.79 cents as at June 30.

An interim dividend of 0.5 cent per share has been declared.

Over the past few years, Oxley has gradually shifted its strategic focus overseas.

In London, Phase 1A and Phase 1B of Royal Wharf are 99 per cent and 93 per cent sold, respectively, and the group has started the handover of certain completed units.

Last month, Oxley entered into an agreement to sell the leases of Blocks 20 and 24 of Royal Wharf to Notting Hill Home Ownership and Notting Hill Housing Trust of London.

Altogether, about 87 per cent of Royal Wharf, which works out to close to 3,000 homes, has been sold.

With the commencement of handover of Phase 1A units, the group's cash flow and financial position will be further strengthened.

Last month, Oxley also launched Phase 1 of its first residential and commercial development project in Batam, Indonesia.

This project covers a land area of about 20,000 square metres at the heart of Batam's thriving financial district, and the development will be Batam's first integrated convention centre and office tower.

The group has sold 45 per cent of the units launched.

To further expand its global presence and tap on the growth potential in Australia, Oxley invested A$32 million for a 40 per cent stake in Pindan Group, a privately-owned property and construction company based in Western Australia.

Pindan Group has an annual turnover in excess of A$500 million.

The acquisition of this stake brings Oxley's market presence to 10 countries.