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Chip Eng Seng Q1 profit falls 30% on increased administrative expenditures

CONSTRUCTION and property group Chip Eng Seng Corporation on Friday posted a 30 per cent fall in net profit for the first quarter to S$6.1 million as a result of increased administrative expenditures and loss of other income.

As such, earnings per share dropped to 0.98 Singapore cent from 1.39 Singapore cents in the previous year.

However, for the three months ended March 31, gross revenue increased 22.3 per cent from S$167.1 million from the year ago period to S$204.3 million.

The expansion in gross revenue was mainly driven by a 52.3 per cent increase in revenue from its property development division to S$137.2 million and a more than two-fold increase in revenue to S$18.1 million in its hospitality divisions, Chip Eng Seng said.

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The increase in gross revenue came despite a 29.4 per cent decrease in contributions from its construction division, which had posted a revenue of S$47.1 million for the first quarter, it added.

Net asset value per share edged up to S$1.275 as at March 31, from S$1.273 Singapore cents three months ago.

Chip Eng Seng shares finished S$0.05 or 5.1 per cent lower at S$0.93 on Friday before the announcement.