UIC's full-year net profit down 35%

SINGAPORE - Developer United Industrial Corporation (UIC) posted lower full-year earnings due to a sharp drop in fair value gains on investment properties.

Net profit fell 35 per cent to $260.6 million for the 12 months to Dec 31.

However, revenue climbed 16 per cent to $807.2 million on the back of higher revenue turnover recognised on from the sales of trading properties, which were up 58 per cent to $291 million.

Progressive revenue recognition on the percentage of completion basis for the residential projects also contributed to the higher turnover, said UIC in a Singapore Exchange filing on Friday (Feb 19).

Overall, net profit from operations increased by 6 per cent to $236.3 million. But the fair value gain on investment properties plunged 86 per cent to $24.3 million, resulting in a much low er net profit for the year.

Earnings per share was 18.6 cents, down from 28.7 cents a year earlier, while net asset value was $4.24 as at Dec 31, up from $ 4.09 as at Dec 31, 2014.

A first and final dividend of three cents a share was recommended. Shareholders can choose to receive dividends in the form of scrip in lieu of cash.

UIC shares closed two cents higher at $2.96 ahead of its earnings announcement.