CDL profit dives 99.1% to S$3.1m for H1 as pandemic hits all segments

CITY Developments Limited (CDL) posted a 99.1 per cent plunge in net profit to S$3.1 million for its first half ended June 30, 2020, from S$362 million a year ago.

The prolonged Covid-19 pandemic "severely impacted" the property and hotels group's performance across its business segments, according to its results released on Thursday.

Loss per share stood at 0.4 Singapore cent for H1 2020, based on a net loss of S$3.3 million recorded after deducting preference dividends of S$6.4 million paid on June 30, 2020. For H1 2019, CDL posted an earnings per share of 39.2 Singapore cents.

Revenue for H1 fell 32.8 per cent to S$1.07 billion, from S$1.6 billion a year ago. The decline was seen across all business segments, with hotel operations accounting for 82 per cent of the drop in revenue.

CDL had on May 12 declared a non-cumulative 1.94 Singapore cents per share preference dividend to holders of its preference shares for the Dec 31, 2019, to June 29, 2020 period. The preference dividend was paid on June 30, 2020.

For the corresponding period last year, CDL paid out a special interim dividend of six Singapore cents per ordinary share, along with a preference dividend of 1.94 cents per preference share.

CDL executive chairman Kwek Leng Beng said the group's hotel operations continue to face pressures in the subsequent quarters, although its property development and investment properties segments have remained relatively resilient.

"Despite the uncertainties, we are confident that with the eventual pent-up demand for travel, the road to recovery will be accelerated, especially when a vaccine for Covid-19 is likely to be available next year," Mr Kwek said.

CDL group chief executive Sherman Kwek said a thorough review is ongoing for the hotels segment. The group is also keeping a close watch for signs of improvement in the global travel sentiment.

Shares of CDL closed at S$8.34 on Wednesday, down S$0.01 or 0.1 per cent.

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