GuocoLand Q1 earnings fall 85% on revenue drop, lower share of JV profits

DEVELOPER GuocoLand saw a steep drop in its first-quarter earnings, as a fall in revenue was compounded by a lower share of profit from associates and joint ventures.

Net profit plunged 85 per cent on the previous year to S$26.2 million for the three months to Sept 30, according to unaudited financial results released on Thursday.

Revenue was more than halved, dropping to S$168 million from S$362 million before, as the group was left with a smaller stock of unsold private homes and notched fewer sales in the quarter.

Meanwhile, GuocoLand's share of profit was down compared with the recognition of profit from a Shanghai joint venture in the same period the year before.

Earnings per share tumbled to 1.93 Singapore cents, down from 15.48 cents previously, while net asset value was S$3.44 a share, compared with S$3.46 as at June 30.

The group said in its outlook statement that the Singapore authorities' recent changes to maximum unit numbers in certain housing developments "are expected to further dampen the collective sales market", but added that the office market outlook remains positive.

No dividend was recommended for the quarter, unchanged from the same period the previous year.

GuocoLand fell S$0.02 or 1.08 per cent to S$1.83 before the results were announced.