Oxley Holdings' Q4 net profit more than trebles

Developer Oxley Holdings has chalked up a 231 per cent increase in net profit for the fourth quarter.

Earnings came in at $137.7 million for the three months to June 30, up from $41.5 million a year earlier.

This was largely down to a fair value gain of $111.2 million comprising mainly a revaluation of Chevron House, reversal of a fair value loss on a financial instrument and a gain on the sale of an investment property in Ireland.

Revenue for the quarter rose 4 per cent to $233.1 million.

This was due mainly to higher contributions from a development in Britain as well as new revenue streams from Novotel Singapore on Stevens and Mercure Singapore on Stevens - both of which began operations in the financial year - as well as Chevron House here.

This was partially offset by lower turnover from Singapore projects due to the timing of completions.

Full-year profit was $285 million, up 31 per cent, while revenue dipped 11 per cent to $1.2 billion.



    $233.1 million (+4%)


    $137.7 million (+231%)


    0.78 cent (+11.4%)

The firm blamed this on lower completion and handover of development projects in Singapore, partially offset by higher revenue contribution from the British project and revenue from Chevron House and the Stevens Road hotels.

Oxley said that its Royal Wharf project in London and developments in Ireland are expected to be major revenue generators. More than 90 per cent of Royal Wharf has been sold, and around 1,400 units have been handed over to buyers.

The group is in talks with a buyer for Block D2 of its Dublin Landings mixed-use development.

Putting its eggs in different baskets has proven to be a winning formula in Oxley's quest for sustainable growth, the group said in a statement.

"Today, we have exciting projects in 11 markets which can deliver $20 billion gross development value," said executive chairman and chief executive Ching Chiat Kwong.

"We are cautiously optimistic about sustainable future growth."

Earnings per share for the quarter increased to 3.4 cents from 1.08 cents.

The firm has declared a final dividend of 0.78 cent, up from 0.7 cent last year. Together with the interim dividend of 0.72 cent, the full-year payout will be 1.5 cents per share.

Oxley shares closed unchanged at 35 cents yesterday.

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A version of this article appeared in the print edition of The Straits Times on August 25, 2018, with the headline Oxley Holdings' Q4 net profit more than trebles. Subscribe