Bukit Sembawang Estates' Q1 profit plunges on lower sales and profit recognition

SINGAPORE-LISTED property developer Bukit Sembawang Estates on Friday reported a significantly lower net profit for the three months ended June 30, 2017, dragged down by lower sales and a decline in profit recognition on development projects.

In the first quarter of FY2018, the company's net profit fell 78.3 per cent year on year to just S$5.96 million.

This represents earnings per share of 2.3 Singapore cents, down from the year-ago's 10.62 Singapore cents.

The company said in filings to Singapore Exchange that in Q1 FY2018, profits were recognised for Skyline Residences and Watercove, and that for Q1 FY2017, profits were recognised for Luxus Hills Phase 6 and 7 and Skyline Residences.

Revenue for the quarter plunged 64.7 per cent to S$15.8 million on lower sales.

Cost of sales also went down 65.6 per cent to S$6.8 million.

Net asset value per share came in at S$4.95 as at end-June, up a tad from end-March's S$4.93.

In its outlook, the company said: "With the property cooling measures introduced by the government still in effect, the group expects that the private residential property market will continue to be affected and this may dampen the group's sales performance in the current year."