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Far East Orchard Q2 profit up 44%
HOSPITALITY player Far East Orchard (FEO) has posted a 44 per cent increase in net profit to S$1.55 million (see amendment note) for the three months to June 30, on the back of higher earnings from its associated companies.
Earnings per share came in at 0.37 Singapore cent, up from 0.26 Singapore cent last year.
The group's sales for Q2 FY2018 were marginally lower at S$35.8 million, compared to S$36 million a year ago, mainly due to lower sales from Far East Orchard's hospitality business in Australia, arising from weak market conditions in Perth and Melbourne, FEO noted.
However, this was partially offset by an increase in sales from Oasia Suites Kuala Lumpur, and Orchard Parade Hotel.
No dividend has been declared for the current financial period, unchanged from the preceding year.
In addition, the group's share of profit of associated companies was higher due to increased contributions from FEO Hospitality Asset Management, which recognised a one-off acquisition fee from the acquisition of Oasia Hotel Downtown, by Far East Hospitality Real Estate Investment Trust in April 2018.
For the six months to June 30, net profit rose 38 per cent to S$9.22 million.
On a per share basis, earnings stood at 2.17 Singapore cents per share, up from 1.58 Singapore cents last year.
Meanwhile, sales revenue fell 0.6 per cent to S$73.9 million for the half-year period.
Shares in Far East Orchard closed flat at S$1.36 apiece on Thursday.
Amendment note: An earlier version of this article incorrectly stated that Far East Orchard's Q2 net profit was S$1.55 billion. It is in fact S$1.55 million. The article above has been revised to reflect this.