FCL posts 42.2% drop in Q2 profit

FRASERS Centrepoint Limited (FCL) marked a 42.2 per cent drop in net profit for the fiscal second quarter ended March 31 to S$71.2 million, on the back of lower revenue and an absence of a divestment gain compared to a year ago.

Its revenue was 21.4 per cent lower than a year ago at S$705.8 million due mainly to lower income recognition from residential projects in Singapore, China and the UK.

For the first half ended March 31, however, net profit was 16.6 per cent higher than a year ago at S$258.8 million and revenue grew 6.9 per cent to S$1.68 billion, underpinned by a higher level of settlement of residential projects in Australia compared to last year, as well as earnings recognition from the completion of Phase 3C1 of Baitang One Suzhou, China.

FCL chief executive Panote Sirivadhanabhakdi said: "The merits of our longstanding strategy of growing our asset portfolio in a balanced and sustainable manner, across geographies and property segments were evident from our first half results".

"Profits from the completion of development projects in Australia and China supported FCL's performance amid lower contributions from Singapore," he added. "We will continue to make selective investments in overseas and recurring income assets as we work towards our strategic objective of achieving earnings sustainability."

The board has declared 2.4 Singapore cents of interim dividend to be paid out on June 9, unchanged from a year-ago period.