Far East Orchard expects to post net loss for FY2020

FAR East Orchard on Thursday announced that it expects to report a net loss for FY2020 as the "prolonged" Covid-19 pandemic continued to hamper its business, following a review of its unaudited financial results.

The adverse impact of the pandemic on the group's business has contributed to losses in its hospitality business and share of the losses from hospitality joint ventures (JVs) in Australia and Europe, said Far East Orchard in a profit guidance.

It added that it has also been hit by share of revaluation losses on certain hotel properties and impairment charges on management rights from hospitality JVs in Australia and Europe, revaluation losses on certain hospitality assets in Australia and Malaysia, as well as impairment on goodwill arising from its hospitality property ownership business in Australia.

These contributed to the group's losses for its full-year ended Dec 31, 2020.

However, the group noted that it still has enough liquidity to meet its operational needs and financial commitments and "will continue to exercise prudent balance sheet management".

As at Sept 30, 2020, Far East Orchard had a cash balance of S$276.1 million, compared with S$257.4 million as at Dec 31, 2019.

The company will announce its FY2020 results on or about Feb 25.

Shares of Far East Orchard ended Thursday unchanged at S$1.09.