UOL's third quarter profits down 2%

SINGAPORE - Property developer UOL posted a drop in its third quarter results despite strong contributions from its Singapore residential projects.

Net profit dipped 2 per cent to $100.8 million for the three months ended Sept 30.

Revenue fell 18 per cent to $354 million compared with the same quarter last year as revenue then was lifted by the completion of a project in Tianjin, said UOL in a statement Wednesday (Oct 11) at market close.

UOL's Singapore projects such as Riverbank@Fernvale and Botanique at Bartley contributed the bulk of the earnings for property development in the third quarter.

Other than the hotel ownership and operations, all its other businesses contributed more to the overall earnings.

Revenue from the hotel business dropped 4 per cent to $105.6 million due to refurbishment works at hotels in Perth and Yangon, as well as weaker exchange rates for the Malaysian Ringgit and the Australian dollar.

Property investment revenue grew 16 per cent to $56.4 million with contribution from OneKM mall in Paya Lebar, which opened at the end of 2014.

Share of profit from associated companies rose 12 per cent to $34.5 million mainly from United Industrial Corporation, which saw higher contributions thanks to its development properties. Share of profit from joint venture companies increased 14 per cent to $10.3 million owing to strong contribution from Thomson Three, which UOL owns 50 per cent.

Earnings per share for the quarter dropped from 13.23 cents to 12.76 cents, while net asset value per share rose to $9.74 as at Sept 30, from $9.68 as at Dec 31 last year.

UOL shares closed five cents lower at $6.46 ahead of its results announcement.